Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

FTSE Opens With A Flourish But Is Undermined By Gold

By Marcus HollandCommoditiesMay 21, 2013 03:33AM ET
www.investing.com/analysis/ftse-opens-with-a-flourish-but-is-undermined-by-gold-167781
FTSE Opens With A Flourish But Is Undermined By Gold
By Marcus Holland   |  May 21, 2013 03:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
UK100
+0.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EZJ
-1.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NWG
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ENRC
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAL
-1.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
REX
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The FTSE 100 opened today and instantly set course for its best levels since September 2000, when it peaked at 6752. The index reached a five and a half year peak of 6735.43 but retreated by the mid day break to 6724.49 — little changed from it’s opening levels of 7723.06.

At the time of writing the index had declined further to 6709.80, primarily due to miners suffering with the price of gold, which continues to plummet. Despite the decline, morale is still high in London as the markets opened up from their closing levels on Friday. The FTSE 100 closed out the week at 6687.80, so is effectively still up 22.00. That could all change however, as the index is still falling at an alarming rate. Some analysts will say this could also be the trigger that investors have been expecting, leading to a pullback on the recent rally that the markets have enjoyed.

Budget airline EasyJet lead the way, climbing to 1235p per share, a rise of 47.00, or 3.96 percent, early afternoon trading. They were followed by Petrofac Ltd and Royal Bank of Scotland Group PLC, who both made advances of 2.49 percent. United Utilities Group PLC and National Grid PLC also saw healthy gains of 2.03 percent and 1.2 percent respectively.

The food industry was perhaps the day’s biggest surprise package, lead by Rexam PLC, who advanced by 1.53 percent on the back of better than expected profits for 2012 of £418m. The nation’s biggest food packaging company were originally expected to post profits of £377m. Associated British Foods PLC also climbed by 1.48 percent.

On the negative end of things were miners. Four of the days six biggest losers by early afternoon trading were in the mining industry. Polymetal International PLC had fallen by 4.26 percent, leading the FTSE in declines, while Fresnillo PLC fell by 2.71 percent. Eurasian Natural Resources Corp PLC and Anglo American PLC also fell by 2.65 percent and 1.85 percent respectively.

The miners plummeted after Gold prices continued to fall, with the precious metal now in its longest slump for more than four years. With surges in markets around the world investors have been removing their wealth from Gold which has been considered a safe haven as it usually moves inversely with the markets. Golds only real chance is if demand from consumers increases but that’s unlikely with so much uncertainty still lingering in the air due to the economic climate. Until something gives, the miners will have to live with being the whipping boys of the markets after spending the better part of a decade as their most frequent saving grace.

Original post

FTSE Opens With A Flourish But Is Undermined By Gold
 

Related Articles

FTSE Opens With A Flourish But Is Undermined By Gold

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email