Miners lead FTSE into the red

Heading into the close, the FTSE 100 has been weighed down by commodity stocks, losing 25 points as the week winds down.

• Equities generally softer at the end of the week
• Glencore’s fall takes a chunk out of the FTSE
• Euro and M&S shares hope for better times next week

Outside of Italian markets indices are struggling to make much headway, and in London a 6% drop for Glencore has wiped 11 points off the index and turned what could have been a flat day into a small negative. The SFO’s investigation into Glencore has come on a day when weaker commodity prices have made themselves felt across the mining and oil sectors but outside of this there thankfully appears little read-across to the rest of the sector from Glencore’s woes. This at least means that the overall bounce in mining stocks has further to go thanks to the still-robust global growth environment. Sadly the FTSE 100 has not been able to clock up a patriotic new record high ahead of the royal
 wedding, but the trend is still intact and renewed weakness in sterling augurs well for further gains. 

Next week’s big events include flash PMIs from the eurozone, with euro bulls hoping these numbers can rescue a currency that has taken a hit over the past week thanks to news from Italy. Markets are gearing up for a new confrontation between Rome and Brussels, boosting the chance of volatility and threatening economic growth that has looked a touch softer of late. Elsewhere full-year numbers from Marks & Spencer will shine new light on UK retailers, but even though the shares have rebounded from a two-year low the outlook here still seems grim.