Markets: investors anticipate QE2
PRE-OPEN REPORT: Shares are tipped to open 20 to 25 points higher, as investors contemplate another round of QE, with BHP in focus as its Potash bid turns acrimonious.
In the US last night, the Dow lost 21 points at 10,740, the Nasdaq Composite fell 15 points at 2,335 and the S&P500 shed 6 points at 1,134.
Yesterday, shares ended the day modestly lower, with broad-based financial losses overpowering strong gains for miners as gold hit another new record high, and base metals firmed as the dollar weakened.
At the close of business, the FTSE100 was down 24.28 points at 5,551.91 with the FTSE250 off 96.74 points at 10,448.33 and the FTSE Smallcaps 11.71 points lower at 2,931.48.
The CBI warned that UK growth will slow in 2011 due to the measures being introduced to cut the fiscal deficit.
The news hit financial stocks, pushing the main index into the red. Another new record high for gold pushed Fresnillo up 22p at 1,218p, while Randgold Resources rose 180p at 6,490p and African Barrick Gold added 14.5p at 601p.
- BHP’s Potash battle dominates this morning’s business pages: click here for more
