FTSE dips as miners take hit

The FTSE 100 opened lower today as weaknesses on Wall Street overnight took their toll on European markets.

Mining stocks were in the firing line, with falling commodity prices and talk of an interest rate hike in China, dragging share prices down.

Xstrata fell by more than one per cent in early trading.

Banking stocks lost some ground after rises earlier in the week, with HSBC dipping slightly this morning.

Medical equipment supplier Smith & Nephew saw its shares lift by four per cent after speculation of a merger with Biomet.

However shares in FTSE-listed British Electricals contractor T Clarke dived by more than 30 per cent after
it issued a profit warning.

Meanwhile the price of goods leaving UK factories rose faster in December than in the previous month, largely due to the increased price of oil, according to the Office for National Statistics (ONS).

On the other side of the Atlantic a flurry of economic data will be released today including December consumer prices, retail figures and industrial
output numbers.

JPMorgan’s fourth quarter earnings will also be closely watched as the bruised US banking sector looks for indications that
sustainable better times are ahead.

US markets were yesterday hit by gloomy jobs data which showed benefit claimants rising.

However tech shares were buoyed by better than expected figures from chip maker Intel. Arm, which makes chips for Apple’s iPhone, was among
the highest risers with its stock soaring by ten per cent.

John Lewis today continued to show that more affluent shoppers were still opening their wallets, with another healthy weekly sales rise.