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Stocks pointing down as parliament is recalled over Syria
by Sarah Miloudi on Aug 27, 2013 at 08:18
14.14pm: Losses have steepened as investors become increasingly uneasy about the situation in Syria.
After holding steady at the beginning of the afternoon session, the FTSE 100 is now close to 0.9% down at 6,432.
David Cameron, the UK prime minister, has ordered MPs to return to parliament on Thursday to face a 'clear motion' linked to the Middle Eastern troublespot, where last week a chemical attack was launched on Damascus.
In the US, traders have also been preparing for more losses after a rocky session on Monday.
In the commodities space, both oil and gold are trading higher on the back of the continued tensions.
According to data from investment bank Nomura, after-hours numbers issued this morning showed Brent October 2013 contracts were trading 0.81%, or 90 cents, higher, while traders said this afternoon that oil was rallying towards a five-month high.
The price of gold climbed 0.89% to $1,417.21, though, inflows into gold exchange traded products have slowed, according to Nomura, and some traders believe investors are yet to 'really panic' over the Syrian tensions.
'Global markets [have] continued to struggle as news reports that some nations, including the US, are now ready to launch an attack on Syria if they are given the go-ahead by officials. However, equity markets are still yet to really panic over the prospects of a number of western countries mounting another possible military intervention in the Middle East,' said Shavaz Dhalla, of Spreadex.