Sector movers: Miners drop as Chinese stimulus underwhelms, metals fall

3rd Apr 2014 15:24

Mining stocks were falling on Thursday afternoon after an underwhelming 'mini-stimulus' package from top metals consumer China designed to prevent an economic slowdown.The stimulus measures included a tax cut for small businesses and higher funding for more low-income housing and infrastructure.Mark Williams, Chief Asia Economist at Capital Economics said that the package was simply a "rehashed" version of previous spending commitments. "This is being heralded as stimulus by some, but it falls a long way short. Many - perhaps all - of these steps were already in the pipeline," he said.Rio Tinto was among the worst performers on the FTSE 100 in London falling 2%, closely followed by Anglo American, Fresnillo and Antofagasta.Falling metal prices were also weighing on stocks. Gold prices declined today, edging towards their lowest levels in seven weeks, as safe-haven buying continued to lose its appeal in the face of improving US data. Gold was 0.5% lower at $1,284.40 an ounce, nearing a price not seen since early-February, as the dollar strengthened against most its major counterparts.A report from ADP yesterday - often seen as a rough indicator of the official non-farm payrolls figure due out on Friday - revealed that private hiring increased strongly in March. This showed that the weather-induced volatility, after poor readings earlier in the year, has begun to subside.Copper prices, meanwhile, were 1.4% lower at $6,610.25 per metric tonne.Top performing sectors so far todayPersonal Goods 23,533.93 +1.45%General Retailers 3,059.22 +1.32%Beverages 13,743.13 +0.76%Financial Services 8,203.63 +0.48%Tobacco 37,448.31 +0.36%Bottom performing sectors so far todayIndustrial Metals & Mining 1,040.34 -1.36%Mining 16,762.58 -1.32%Forestry & Paper 11,428.41 -1.12%Software & Computer Services 1,188.59 -0.97%Electricity 9,636.39 -0.94%BC