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Stocks pointing down as parliament is recalled over Syria
by Sarah Miloudi on Aug 27, 2013 at 08:18
12.50pm: US stocks were positioning for another fall as fears over Syria continued to unnerve investors.
Dow Jones futures were readying for a 0.59% drop at trade's open in the US, while S&P futures were pointing to losses of 0.63%. On Monday, the Dow Jones Industrial Average closed at 14,946, reflecting a drop of 64 points, or 0.43%. The S&P ended the session at 1,655, 6.72 points, or 0.4% down.
In the UK, the FTSE seems to have stabilised at around 6,453, 0.59% or 38.4 points down. Shortly before 1pm, Britain's parliament was recalled over the escalating tensions in Syria. Politicians will be reconvene on Thursday, and prime minister David Cameron said they would be given a 'clear motion' relating to Syria following last week's chemical attacks in Damascus.
9.50am: UK stocks have extended their losses with the FTSE 100 down 59.9 points, or 0.86%, two hours into the morning's session.
At 9.49am, Britain's main index stood at 6,436, having hovered around 6,480 shortly after its open.
Stocks most vulnerable to investor sentiment about the global economy and political unrest have taken most of the strain. The mining sector was down 1.5% shortly before 10 am and occupied five of the FTSE's biggest faller slots.
Antofagasta, which reported a drop in its first-half profit of roughly a third, was among the stocks that felt the pain and its shares dropped 2.5% to trade at 891.5p.
Russian precious metals producer Polymetal International also fell, and dropped around 6.3% after analysts at HSBC downgraded it from 'overweight' to 'neutral'.
While Petrofac climbed on the back of a strong set of results as well as its intention to pounce on oil and gas projects in Mexico, retailer M&S was buoyed by an upgrade from Citigroup. Analysts at the bank raised their recommendation on its shares from 'neutral' to 'buy' and praised recent management changes at M&S as well as the credibility of more upbeat UK economy forecasts.