Overview: the FTSE 100 stood 0.25% below the opening level in late afternoon after US non-farm payrolls data showed a reduction of 95,000, while analysts expected a loss of 5,000 jobs.
Platinum miner Lonmin (LON:LMI) led the blue chips with a 3.5% climb. Base metal miners Xstrata (LON:XTA) and Anglo American (LON:AAL) followed with gains of nearly 2%. Peers Rio Tinto (LON:RIO), BHP Billiton (LON:BLT) and Antofagasta (LON:ANTO) advanced 1.5%.
Software developer Sage Group (LON:SGE) and silver miner Fresnillo (LON:FRES) were at the bottom of the FTSE 100 with losses of 4% and 3.5% respectively. Software developer Autonomy Corp (LON:AU) and commercial property company Land Securities (LON:LAND) declined 2.5%. Essar Energy (LON:ESSR), telecom group BT (LON:BT.A) and defence contractor Cobham (LON:COB) lost about 2%, as did banking group Barclays (LON:BARC).
US stocks were off to a quiet start. The Dow Jones Industrial Average and the S&P 500 index were unmoved, while the technology heavy NASDAQ composite declined marginally.
Commodities
Rally in oil prices comes to an end
Oil futures pulled back following a surge that put the prices at the highest levels since early May.
In addition to the pressure from the jitters over the US data, the US dollar rebounded as the EUR/USR rate declined to 1.391 after nearly reaching 1.40.
A stronger US dollar makes dollar-denominated commodities such as crude oil more expensive for holders of other currencies, denting demand.
November Brent Crude declined to US$82.35/barrel, while US light, sweet crude for November delivery dropped to US$80.85/barrel.
BP (LON:BP) lost 1%, while fellow supermajor Shell (LON:RDSB) posted a small loss, as did Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW).
BG Group (LON:BG) declined 1.1%.
Oil and gas engineering firm Amec (LON:AMEC) stood just above the opening level, while peer Petrofac (LON:PFC) dropped 1.1%.
Heritage Oil (LON:HOIL) led the midcaps with a 5% advance. Soco International (LON:SIA) climbed 1.5%.
Salamander Energy (LON:SMDR) tacked on less than 1%.
Dragon Oil (LON:DGO) and JKX Oil & Gas (LON:JKX) moved in the opposite direction, shedding about 1.5%.
Dana Petroleum (LON:DNX), Melrose Resources (LON:MRS) and Premier Oil (LON:PMO) were little moved.
Services companies were in decline with Wood Group (LON:WG) posting a small loss, while Wellstream Holdings (LON:WSM) lost 1.2%.
East and Central Africa oil and gas explorer Dominion Petroleum (LON:DPL) was among the top performing juniors, rising 6%.
Gold retreats
After posting new record highs at US$1,364/oz yesterday, gold retreated on profit taking and concerns that bullion has been overbought.
Caution ahead of today’s key US non-farm payrolls data has helped the yellow metal claw back some of its losses, putting it at US$1,334/oz.
Silver followed gold, rising to US$22.63/oz, while platinum retreated to US$1,689/oz.
Mining stocks were mixed. Platinum miner Lonmin (LON:LMI) was in the lead with a 3.5% climb. Gold producer Randgold Resources (LON:RRS) posted a small gain, while peer African Barrick Gold (LON:ABG) declined 1%.
Silver miner Fresnillo (LON:FRES) declined 3.5%, while peer from the FTSE 250 Hochschild Mining (LON:HOC) shed 4%.
Other midcaps also turned negative with gold miner Petropavlovsk slipping 5.5%, while Aquarius Platinum (LON:AQP) declined marginally.
Diversified mining investment company Electrum Resources (LON:ECR) and Turkey and Saudi Arabia operating gold and copper explorer KEFI Minerals (LON:KEFI) were among the top performing stocks in the sector, rallying 19% and 17% respectively. Copper and gold focused explorer EMED Mining (LON:EMED) and Tajikistan focused gold exploration company Kryso Resources (LON:KYS) also did well, rising 7.5% and 7% respectively.
Base metals drag down miners
Copper and nickel climbed to US$3.73/lb and US$10.97/lb, while zinc improved to US$1.03/lb.
Anglo American (LON:AAL) and Xstrata (LON:XTA) led the base metal miners with gains of 2%. Rio Tinto (LON:RIO), Antofagasta (LON:ANTO) and BHP Billiton (LON:BLT) followed, rising 1.5%.
Kazakhmys (LON:KAZ) and Vedanta Resources (LON:VED) added less than 1%.
Eurasian Natural Resources (LON:ENRC) bucked the trend, posting a small loss.
Juniors weren’t very active today.
Banks, insurance, private equity
Royal Bank of Scotland posted a small gain, while other major banks were in decline. Another part-nationalised bank Lloyds (LON:LLOY) dropped 1%,a s did Standard Chartered (LON:STAN), while HSBC (LON:HSBA) declined marginally.
Most insurance companies were in decline. Old Mutual (LON:OML) was at the bottom of the pile with a 1.5% decline. Legal & General (LON:LGEN), Prudential (LON:PRU) and Standard Life (LON:SL) were down 1%.
RSA Insurance (LON:RSA) posted a small loss.
Aviva (LON:AV) and Admiral Group (LON:ADM) were unmoved.
Private equity group 3i (LON:III) was flat.
Small Cap Movers
International payment and data processor Planet Payment (LON:PPT) was among the leading risers in the market today, soaring 31% after Visa (NYSE:V) decided to lift its moratorium on dynamic currency conversion (DCC).
Virtual queuing specialist Lo-Q (LON:LOQ) and pest control company TyraTech (LON:TYR) also were bright, adding nearly 7%.
Small Cap News
KEFI Minerals (LON:KEFI) unveiled plans to raise £625,000 as managing director Jeffrey Rayner gave a particularly bullish assessment of the company's prospects in Saudi Arabia. The company is expecting the first of twenty-one exploration licenses it has applied for to be granted imminently.
With the successful completion of Russell-Bevly #1, a revised reserve report on the North Chapman Ranch in Texas has been released by Range Resources (ASX:RRS, LON:RRL) following the successful drilling and completion of the Russell-Bevly #1 appraisal well earlier this year, increasing Range’s attributable commercially recoverable reserves by 67%.
Planet Payment (LON:PPT) said that Visa’s (NYSE:V) decision to end its moratorium on dynamic currency conversion (DCC) would facilitate its sales and entry into new markets.
Lonrho (LON:LONR) is set to raise up to US$70 million to expand its agricultural export business. This morning the company announced a US$70 million convertible bond issue. The new securities will carry a semi-annual coupon between 6.5% - 7% and they will mature in 2015.
Mariana Resources (LON:MARL) has appointed Canadian Randy Turner to the board as a non-executive director ahead of its listing on the Toronto Stock Exchange (TSX). The company said the appointment was in line with its strategy of bolstering its Canadian exposure ahead of the listing.
Finders Resources (LON:FND, ASX:FND) finance director Mike Stirzaker will stand down at the end October. He has landed a new senior role at a Sydney-based natural resource focused fund manager. Stirzaker will stay on at Finders as a non-executive director.
ClearDebt Group (LON:CLEA) said that individual voluntary arrangements (IVAs) passed in September 2010 reached a record high for the company of 138 cases, while the number of total cases more than doubled in the first quarter. The news triggered a buying spree, driving ClearGroup shares up 25% by midday.
Forte Energy (ASX: FTE, LON:FTE) is preparing for intense field activities at its main uranium projects, with a new drilling campaigns starting near Bir Moghrein in Mauritania, and with activities resuming at Firawa in Guinea after political issues that hampered progress were resolved.
Image Scan Holdings (LON:IGE) anticipates 2010 revenues to be ahead of the previous year as sales of security equipment continued growing. The turnover for the year to 30 September is expected at £1.5 million, up from £1.4 million in 2009.
Leni Gas & Oil (LON:LGO) was on the move in this morning’s trading, with the stock spiking to an intraday high just below 6p, being the second most traded stock on the London Stock Exchange.
Electrum Resources (LON:ECR) shares spiked over 30% higher at midday reaching 1.675p per share, after the group announced yesterday that it acquired two gold-base metal exploration projects in Argentina.
KEFI Minerals (LON:KEFI) shares advanced almost 20% this morning after the company secured funding for initial gold exploration work in Saudi Arabia. Unveiling plans for a £625,000 cash call, managing director Jeffrey Rayner also gave a particularly bullish assessment of the company's prospects in Saudi.
The share price says it all: in just three months the value of explorer Beowulf Mining (LON:BEM) has more than doubled in value. The catalyst for this movement has been a series of bullish updates on iron ore exploration in the remote and inhospitable region of northern Sweden. Again today the stock inched a little higher – it is up 10 per cent after an upbeat appraisal of its Kallak iron ore project. Today’s news confirmed “extended mineralisation” at Kallak North, which has an estimated resource of 150 million tonnes, with grades above 30 per cent.
Large and Mid Cap News
Vodafone Group PLC (LON:VOD) said its Vodafone Global Enterprise unit has acquired two telecom expense management specialists: Quickcomm of Australia and TnT Expense Management of the US.
Afren (LON:AFR) has now completed its takeover of east African oil junior Black Marlin. The company agreed a share-based deal which valued the Toronto-listed junior at CDN$106 million, in June.