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Sunday 08th of May 2011
May 5, 2011    

Miners and energy firms drop on declines in oil, metals prices

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by Elaine Frei
Miners and energy firms drop on declines in oil, metals prices

Miners and the energy sector were lower in London as prices for metals and crude oil plummeted Thursday, with crude prices dropping nearly 9 percent in both London and New York, while gold fell to well below $1,500 per troy ounce and copper dropped 12 cents per pound in New York trade.

Declines in the basic resources sector were led by Talvivaara Mining Company (LSE: TALV), which was down 5.03 percent, while the few gainers in the sector were topped by paper maker Mondi (LSE: MNDI), which was up 2.55 percent, while declines in the all-lower energy sector were led by a 5.37 drop for oil well builder and refurbisher Lamprell (LSE: LAM).

The FTSE 100 was down 1.07 percent to 5,919.98 in London, while the FTSE 250 dropped 0.53 percent to 11,845.7 as the Bank of England kept UK interest rates steady at 0.5 percent, just as expected, as banks also declined after disappointing results in the sector, while the travel and leisure, retail and health care sectors were all mixed and an investment management group led declines on the 100.

Most other markets in the European region were also lower after quarterly reports in the banking sector disappointed, as the FTSE Eurofirst 300 was down 0.29 percent to 1,131.36 while the IBEX fell 0.8 percent to 10,627.3 and the CAC-40 dropped 0.95 percent to 4,004.87, but the Dax managed to add 0.04 percent to 7,376.96 in Frankfurt.

Markets in Asia and the Pacific region were mixed after yesterday’s report from the Institute and Supply Management that showed growth in the US services sector slowing in April.

The Shanghai Composite added 0.22 percent to 2,872.4, Taiwan’s Taiex was up 0.8 percent to 4,753.7 and Australia’s markets managed gains after early declines on bad news from its retail sector, with the S&P/ASX200 adding 0.29 percent to 4,753.7 while the Sydney Ordinaries gained 0.31 percent to 4,828.9.

Among decliners in the sector, the Straits Times Index was 0.13 percent lower to 3,109.85 in Singapore, Hong Kong’s Hang Seng was down 0.23 percent to 23,261.6 as the property sector dropped on a decline in home sales there last month and the Sensex dropped 1.4 percent to 18,210.6 in India, while Tokyo’s markets remained closed due to a series of holidays there and South Korea’s markets were also closed for the session.

New York equities markets were mixed in afternoon trade as the Dow Jones Industrial Average fell 0.49 percent to 12,661.4 in afternoon trade and the S&P 500 dropped 0.25 percent to 1,343.89 but the Nasdaq Composite added 0.26 percent to 2,835.29.

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