European markets lack direction this morning. The FTSE found itself thrown into the hands of a confused market. A very short-lived rally followed the negative open as energy and materials gained on firmer oil and commodity prices. Some profit taking is already underway. An hour after the open, all sectors in the FTSE are in the red.
Anglo American (+3.53%), Glencore (+2.88%), Rio Tinto (+2.56%), Antofagasta (+2.00%) and BHP (+1.66%) were among the frontrunners. The picture altered quickly. Glencore reversed gains and raced to the top of the red list and is already 3.16% in the negative at the time of writing.
In summary, the volatility is high and the visibility is low. Randgold, Intercontinental and ARM Holding rank among the losers in London on broker downgrades.Randgold (3.22%)
cut to equal-weight from overweight at Morgan Stanley.Intercontinental (-2.23%)
cut to sell vs neutral at Citi.Arm Holding (-1.47%)
cut to hold vs buy at Stifel.
WTI advanced to $36.72, a stone’s throw below the 100-dma ($37.10). Oil managed to pick-up by circa 40% since it hit a twelve-year bottom hit in January. The appetite is somewhat dented after Moody’s announced to put most of oil producer nations under watch for possible downgrades. Gold remained in demand above $1256.