1630: Close The FTSE ended the day 34 points lower, led by mining stocks, including Vedanta despite the company announcing over the weekend that it has completed the merger of two of its subsidiaries. In economic news, July retail footfall was given a 0.8 per cent boost by the sunny weather, while the CBI raised its growth forecast for 2013 to 1.2 per cent and to 2.3 per cent for 2014. In other news, house prices continued to soar during August, despite asking prices actually dropping, according to property website Rightmove. The FTSE closed at 6,466.
1455: The FTSE 100 has dropped towards its lowest level of the day after a broadly flat start on Wall Street with US 10-year Treasury yields in focus as they edge closer to 3.0 per cent. They are currently up four basis points at 2.87 per cent, a fresh two-year high. The FTSE 100 is down 27.12 at 6,572.87.
1330:Russia's economy improved slightly in July, data revealed, with business investment returning to growth and retail sales suggesting greater consumer confidence. Capital investment, which accounts for about a fifth of gross domestic product and includes money put in tangible goods such as land, machinery or buildings, rose by 2.5 per cent in July, the Federal Statistics Service said.
1210:Bad loans at Spanish banks hit a record high in June as a ratio of total issued credit, according to Bank of Spain data released on Monday. The percentage of bad loans hit 11.61 per cent, its highest level on record, compared the May's reading of 11.2 per cent. Doubtful loans on credit institutions' balance sheets increased to 176.42bn euors, from the prior months 170.21bn euros.
1120:The Bundesbank expects Germany to return to normal growth in the second half of this year and inflation to ease further, according to the central bank's August monthly report published on Monday. "Economic growth in Germany is likely to return to normal and steady rates in the second half of 2013," the bulletin said. Germany reported stronger-than-expected growth for the second quarter on August 14th, helping the Eurozone to finally exit an 18-month long double dip recession.The Bundesbank also said that it expected the rate of inflation to "ease somewhat over the next few months".
1000: The Confederation of British Industry has lifted its forecast for economic growth for this year from 1.0 per cent to 1.2 per cent, double the pace predicted by George Osborne in his March budget. A series of upbeat reports, including in the services, construction and manufacturing sectors, prompted the organisation to raise its estimates. The CBI, which represents 240,000 UK businesses, also boosted its forecast for 2014 from 2.0 per cent to 2.3 per cent, supported by an expected increase in disposable income and business and housing investment.
0845: Stocks have quickly sunk into the red as tapering concerns continue to dampen risk appetite. With the economic data calendar looking pretty bare today, the focus is likely to remain on the Fed ahead of the minutes of the latest FOMC meeting to be released on Wednesday, as investors continue to speculate about the future of US stimulus. Miners are the worst performers this morning with Fresnillo, Glencore Xstrata, Randgold, Rio Tinto, Anglo American, BHP Billiton and ENRC all registering losses early on. Vedanta is also down despite announcing over the weekend that it has completed the merger of two of its subsidiaries, Sesa Goa and Sterlite Industries. The FTSE 100 is down 20.66 at 6,479.33
0815: It's been a cautious start for markets this morning following a choppy week last week which saw the FTSE 100's second weekly decline in a row and the worst weekly performance on the Dow Jones so far this year. Kentz is grabbing headlines this morning after being approached by AMEC with a 565-580p-a-share proposal. Kentz has responded saying that the offer undervalues the company and was rejected by its board, yet the stock has surged by as much as a quarter this morning to around the same level as the offer price. The FTSE 100 is up 4.3 points at 6,504.29.