FTSE volatile as miners surge forward

London trading has been turbulent this morning, with the FTSE 100 index moving wildly as it makes its way into positive territory, up 7.52 points (0.17%) to 4,352.99 at 8.30am.

Mining firms led the way despite fears of a slowdown in demand for raw materials, with Eurasian Natural Resources up 5.56% to 589p, closely followed by Kazakhmys, which saw shares rise 5.52% to 679p. Vedanta, Rio Tinto and Xstrata were also among the biggest gainers, up 3.62%, 3.27% and 2.82% respectively.

British Airways shares were hit after the firm announced its first full-year loss in seven years, down 5.59% to 153.7p. Liberty International shares fell 5.65% to 338.25p after the firm announced a 77% take-up for its open share offer.

On Wall Street, share prices failed to recover from news over fears the US could suffer the same fate as the UK, and have its credit rating downgraded.

General Motors shares rocketed in value after the US Treasury decided to help GMAC LLC make more car loans. Shares in the auto giant jumped 29.66% to $1.90.

However, consumer goods and heavy industry both fared badly on fears debt levels in the US are too high.

On the consumer side, Home Depot shares fell 3.48% to $22.87 while General Electric dropped 3.56% to $13.29. Aluminum maker Alcoa saw shares dip 4.32% to $9.04 over fears demand for materials will remain weak, while Caterpillar lost 4.05% to £35.54 as the construction sector continues to struggle.

In Tokyo, the Nikkei 225 fell 38.34 points (0.41%) to 9,225.81 as the yen strengthened against the dollar, putting further pressure on exporters.
Investment Week