Market overview: Analyst warns of poor market internals

1630:Close Very low inflation readings in China and copper prices at six-year lows (COMEX and NYMEX will remain closed on Wednesday) weighed on markets, as did the continued selling pressure on Wall Street following October’s sharp gains. Anglo American was left reeling from negative analyst comments out of Barclays and JP Morgan. In fact, the first of those two brokers downgraded the entire sector. To take note of perhaps, Dana Lyons, a partner at J.Lyons Fund Management, pointed out the poor internals in the Nasdaq-100s recent advance, which has increasingly been led by fewer and fewer stocks. FTSE 100 down 19.88 points to 6,275.28.

1230: European and London equity indices are on the slide, dragged by basic resources stocks. The FTSE 100 is down 0.59%, while Germany’s DAX is down 0.44%, while France’s CAC 40 is 0.6% lower. It was a question of momentum and US rate hike likelihood for some traders, while on a technical view IG's Josh Mahony was noted that, after a three-week low being created yesterday, London's blue chip is hovering a matter of points above the crucial technical support level of 6,252 "which if broken could see short-sellers come out in force".

1210: Big UK food and clothes retailers all down: Tesco by 3%, Sainsbury's 1.6%, Morrison 2.7%, Marks & Spencer 1.9% and Next 0.8%. The earlier BRC-KMPG retail sales monitor made for mixed reading, with food sales falling but improving and clothing sales growing but at a slower rate.

1030: Some broker notes are moving prices today as well, with two from Barclays adding to the losses in the FTSE 350. In one on the European mining sector, the bank downgraded its stance to ‘neutral’ from ‘positive’, pointed out that the last five years have marked the worst performance since 1966 and said it was "hard to see what might pull the sector out of its tailspin". Another on European oilers saw downgrades for Cairn Energy and Premier Oil, although this was on a stock-picking basis as analysts foresee a gradual recovery in oil prices over the next year.

0950: Stocks are likely to be reacting to China’s consumer inflation slowing down more than expected last month, with figures released on Tuesday showing Chinese consumer price index (CPI) rose 1.3% year-on-year in October compared with a 1.6% gain in the previous month and with analysts’ expectations for a 1.5% increase.

0920: The UK blue chip index has lost momentum and is now in the red, following its peers in Asia and across the Atlantic and British Channel. Germany's Dax has also retreated from initial gains.

0900: Despite falls in US and Asia, the FTSE 100 is on the up after Monday's losses, with investors perhaps taking heart from some encouraging earnings reports from Vodafone, Experian and National Grid beating estimates.

Market Movers

FTSE 100 (UKX) 6,269.21 -0.41%
FTSE 250 (MCX) 17,014.66 -0.57%
techMARK (TASX) 3,072.93 -0.08%

FTSE 100 - Risers

Experian (EXPN) 1,176.00p 6.52%
Vodafone Group (VOD) 224.10p 4.50%
National Grid (NG.) 915.20p 2.14%
Berkeley Group Holdings (The) (BKG) 3,133.00p 1.20%
BT Group (BT.A) 465.75p 1.14%
Pearson (PSON) 830.50p 1.10%
Randgold Resources Ltd. (RRS) 3,968.00p 0.89%
Inmarsat (ISAT) 1,022.00p 0.79%
Hikma Pharmaceuticals (HIK) 1,997.00p 0.76%
ITV (ITV) 258.50p 0.66%

FTSE 100 - Fallers

Anglo American (AAL) 490.60p -4.92%
Wolseley (WOS) 3,619.00p -4.89%
Rolls-Royce Holdings (RR.) 674.00p -3.51%
Tesco (TSCO) 173.30p -2.94%
Land Securities Group (LAND) 1,242.00p -2.82%
Prudential (PRU) 1,507.50p -2.74%
Burberry Group (BRBY) 1,337.00p -2.69%
Morrison (Wm) Supermarkets (MRW) 159.80p -2.44%
Meggitt (MGGT) 375.20p -2.32%
Royal Bank of Scotland Group (RBS) 312.40p -2.25%

FTSE 250 - Risers

DCC (DCC) 5,580.00p 4.20%
Greencore Group (GNC) 328.10p 2.60%
Aveva Group (AVV) 2,055.00p 2.44%
Dignity (DTY) 2,570.00p 2.39%
PayPoint (PAY) 1,012.00p 2.22%
P2P Global Investments C (P2P2) 975.00p 2.09%
Polymetal International (POLY) 584.00p 1.83%
Centamin (DI) (CEY) 61.85p 1.81%
NMC Health (NMC) 767.50p 1.66%
CLS Holdings (CLI) 1,815.00p 1.34%

FTSE 250 - Fallers

Kaz Minerals (KAZ) 91.45p -8.23%
Tullow Oil (TLW) 216.00p -5.30%
Drax Group (DRX) 246.60p -4.82%
Petra Diamonds Ltd.(DI) (PDL) 65.55p -4.59%
BTG (BTG) 521.00p -4.58%
Premier Oil (PMO) 74.30p -4.31%
Tullett Prebon (TLPR) 351.30p -4.07%
Vesuvius (VSVS) 352.20p -3.85%
Zoopla Property Group (WI) (ZPLA) 233.90p -3.35%
Cairn Energy (CNE) 149.50p -3.17%