By Benjamin Chiou
Date: Wednesday 30 May 2012
LONDON (ShareCast) - Every sector was either flat or in the red on Wednesday afternoon, as ongoing uncertainty in the Eurozone fuelled a sell-off in equity markets.
Bearing the brunt of the downward pressure were the industrial metals and mining stocks as copper prices continued to fall. By 16:07 in London, copper for three-month delivery was down 1.7% at $7,545.50 a metric tonne, as fresh concerns over Spain cloud the outlook for the global economy. Copper is heading for its largest monthly drop since September.
In the last week or so, the market has gone from talking about the Greek debt crisis and its vulnerable bailout deal with the 'Troika' to Spain and the recapitalisation of its banking sector. Some analysts, like Matthew Lynn from Strategy Economics, are saying that Spain is more likely to leave the euro before Greece.
Meanwhile, fading hopes of further Chinese stimulus were also weighing heavily on sentiment today; China does not intend to introduce economic stimulus measures like it did when the financial crisis started, according to Chinese news agency Xinhua. Speculation of a massive stimulus plan had surfaced last week after Chinese Prime Minister Wen Jiabao said that his country would take the necessary steps towards policies that will support the economy.
Copper miner First Quantum Minerals was among the worst performers in the industrial metals sector, while iron ore producers Evraz, Ferrexpo, Zanaga Iron Ore, Bellzone Mining and London Mining were also heavily out of favour.
Top performing sectors so far today
Bottom performing sectors so far today
Industrial Metals & Mining 3,018.66 -4.14%
Automobiles & Parts 4,269.31 -3.59%
Forestry & Paper 5,444.92 -3.44%
Construction & Materials 3,180.87 -3.18%
Oil Equipment, Services & Distribution 22,967.10 -3.14%
Email this article to a friend
or share it with one of these popular networks: