Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Shares fall as commodity prices slide

Prices fell as China released weak credit data, sending the Shanghai Composite down

Commodities crashed after more negative Chinese economic data, dragging markets down on Friday.

Copper traded at six-year lows, crude was near six-and-a-half-year lows and iron ore dipped below US$48 a tonne.

Prices fell as China released weak credit data, sparking a 52-point fall in the Shanghai Composite Index and a 101-point loss on Japan's Nikkei 225.

AJ Bell investment director Russ Mould said: "There is increasing evidence that global growth is slowing and investor confidence has been hit as a result."

The FTSE 100 Index fell 24.62 points to 6154 in early trading while the Dax dropped 14 points and the CAC-40 was eight points adrift.

French and German third quarter GDP figures both came in at 0.3%. For France that was a big improvement on the 0.0% in the second quarter. But for Germany, it was a drop from 0.4% in Q2.

Back on the markets, Rolls-Royce (LON:RR.) took another pounding after warning on 2015 profits and giving a gloomy 2016 forecast. Shares reversed 16.5p to 520p.

After rising yesterday on an upbeat trading statement - despite news of job cuts and reduced Eurofighter production - BAE Systems (LON:BA.) flew 2.6p lower to 452.4p.

Horizon Discovery (LON:HZD) ticked up 2.5p to 143.5p after influential biotech and technology investor Neil Woodford gave further backing to the life sciences group.

Alaska-focused 88 Energy (LON:88E) reported the re-start of drilling at its Icewine project after technical delays, but its shares backtracked 1.58% to 0.62p.

US-focused explorer and producer Caza Oil & Gas (LON:CAZA) (TSX:CAZ) headed 0.08p lower to 0.32p on news of a fall in revenue due to lower commodity prices and a subsequent decision to reduce spending.

MARKET PREVIEW

If not exactly a horror show, Friday the 13th is shaping up to be a fairly miserable day for the FTSE 100.

The spread betting firms are predicting the blue-chip index will fall around 30 points on open to 6,148.68.

The equity markets of Asia and the US were hit by lower commodity prices and spooked by the imminent possibility of a rise in American interest rates.

West Texas crude was down around 0.6% at US$41.51, while China’s weak credit growth hit copper and iron ore prices.

“The last time commodities had such a bad run was in the lead up to the September Federal Reserve meeting when the majority of economists thought the bank would hike interest rates,” said Jasper Lawler, analyst at CMC Markets.

On Wall Street, the Dow closed down 1.4%, as did the broader-based S&P 500. The tech heavy NASDAQ was unchanged.

In Asia, Japan’s Nikkei 225 was off 0.5%, while the Shanghai Composite fell 1.1%.

Back in the UK, it is expected to be a quiet day for corporate news, with second-tier firms Rotork and car seller Auto Trader Group slated to report figures.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK