Threat of US shutdown hits mining stocks
Mining stocks suffered heavy losses today as fears over the impact of an imminent US government shutdown loomed over markets.
Congress and the White House must find a way to keep funding the government after the current budget year ends later tonight. Otherwise, some of the government will have to shut down.
With investors fearful that the stalemate will derail recent signs of recovery in the US economy, Asian markets fell sharply overnight and triggered a decline of 53.8 points to 6458.5 for London’s FTSE 100 Index.
Among the miners, Glencore Xstrata fell 8.13p to 335.9p and Anglo American was down 33.8p to 1506.3p.
On a shortened risers board, housebuilder Persimmon set the pace after Prime Minister David Cameron announced that the second phase of the Government’s Help to Buy scheme will be introduced three months earlier than expected.
Persimmon shares surged 13p to 1074p, while in the FTSE 250 Index Barratt Developments was 3.7p higher to 305.8p
Other risers included William Hill after Deutsche Bank introduced a buy rating on the bookmaker. Shares were 6.7p higher to 408.8p
Outside the top flight, Albemarle & Bond shares were hammered after the UK’s second biggest pawnbroker announced plans for a deeply-discounted rescue fundraising with existing shareholders. The company, which fell more than 40% or 52.4p to 72.6p, has been hit by the recent decline in gold price
