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FTSE underperforms on low oil and energy prices
The European stock markets reversed earlier losses on the weaker euro, leaving the FTSE stocks back in the negative territory. The rout in iron ore is leaving its mark and preventing any credible moves through the 6400 level.

The FTSE effectively underperforms its European peers this morning and the negative divergence is mostly due to its high level of exposure to oil and commodity prices. The WTI contacts traded down to $41.50/bbl in Asia, copper futures are not willing to give up on the $2/lb support.

In London, BHP Billiton (-4.89%) leads losses, followed by Antofagasta (-2.19%), Anglo American (-2.17%) and Glencore (-2.05%).

Aberdeen (-4.21%) appears among the top Losers on the back of a tenth consecutive quarter of net fund outflows as emerging markets continue to look shaky.

The pound is testing the 1.50 mark. The rising selling pressures on the pound seem strong enough for a slide below the 1.50 mark against the US dollar. On the other hand, the recovery in euro-pound is brittle as the euro is less popular amongst buyers before Thursday’s ECB meeting.