FTSE under pressure as miners suffer
|
Weakness in metal prices has been a drag on the FTSE, amid an already tough time ahead of a potentially hawkish BoE tomorrow. Meanwhile Bitcoin enters bear market territory as Wall Street has its say.
- FTSE regains ground after tough start
- Miners dragging FTSE due to weaker metal prices
- Bitcoin enters bear market territory
The FTSE has tried its best to regain lost ground today, with the hawkish connotations associated with yesterday’s rise in UK inflation driving early losses. The failure of UK wage growth to keep up with the incessant rise in in UK inflation is creating a widening gap which will drive down real incomes, hurting consumption driven economic growth. The UK economy remains the ongoing theme of the week, with the Bank of England expected to provide a more hawkish statement at tomorrow’s meeting.
Miners provided a drag upon the FTSE 100 throughout today’s session, as the deterioration in both precious and industrial metals dragged the likes of Antofagasta, Anglo American, Fresnillo and Glencore to the bottom of the leaderboard. Copper was today’s big loser amongst a sea of red for metals, while a selloff in gold in the face of equity market weakness saw the precious metal finally trade like a physical commodity rather than just a safe haven asset.
Bitcoin has grabbed the attention of traders once more, with Wall Street stalwarts Jamie Dimon and Mohamed El-Erian both doing their best to talk down the hopes of this new disruptive technology. With Bitcoin falling over 23% in less than two weeks, we have now seen the cryptocurrency break into bear market territory. Past experience tells us that Bitcoin will likely brush these latest challenges aside, yet with Chinese regulators clamping down and big name financial leaders talking Bitcoin down, this has been a tough fortnight for cryptocurrencies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.