Mining stocks have dragged down the FTSE 100 again, leaving it behind while other indices make fresh gains ahead of US jobs data this week, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 slips lower
“While the Dax hits a new record high and the Nasdaq 100 starts to move higher again, the FTSE 100 has been left out. Losses in commodity prices have sent the mining sector into retreat, weighing on the index. The year that started so well for the FTSE 100 has turned into yet another dismal period of underperformance. International investors continue to avoid the UK, starving the FTSE 100 and its constituents of the flows needed to fuel a proper rally.”
Is a ‘Santa rally’ still possible?
“Investors can be forgiven for worrying that they have already received their presents, in the form of an astonishing rebound for many indices. The Dow’s straight-line 12% surge from the October low shows no sign of going into reverse, but with so much good news priced in it seems that Santa has already delivered his rally. Barring a sudden drop in payrolls this week, 2023 might go out with a whimper rather than a bang.”
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks

AUD/USD faces potential extra gains near term
AUD/USD faced renewed upward pressure following the US Dollar’s sell-off, successfully reclaiming the key 0.6300 mark and beyond, supported by persistent optimism in the risk complex.

EUR/USD now looks to challenge 1.0500
EUR/USD gained ground for the third consecutive day on Thursday, trading within close reach of the 1.0450 level, or three-week highs, driven by a strong selling bias in the Greenback.

Gold comfortable around $2,910
Gold prices now extend the recent breakout of the key $2,900 mark per ounce troy on the back of persistent weakness in the US Dollar and diminishing US yields across the curve.

Three reasons why PancakeSwap CAKE is rallying 96% in seven days
PancakeSwap’s native token CAKE extended gains by 8% on Thursday, inching closer to the $3 level. The DEX token hit several key milestones in the last 30 days, according to an official update shared on X.

Tariffs likely to impart a modest stagflationary hit to the economy this year
The economic policies of the Trump administration are starting to take shape. President Trump has already announced the imposition of tariffs on some of America's trading partners, and we assume there will be more levies, which will be matched by foreign retaliation, in the coming quarters.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.