Market update: Stocks edge higher despite mining weakness

Source: Henderson Global Investors

Overnight, US markets reversed Tuesday’s gains (S&P 500 -1.4%, Dow Jones -0.9%). Bank of America’s latest earnings report disappointed and dragged financials down. Other sectors which fell included technology and energy stocks. Meanwhile, the Federal Reserve’s Beige Book, which reports on the economic conditions of 12 districts said the US economy grew at a "moderate" pace in March and early April, with growth in manufacturing and consumer spending.

Over in Europe this morning stocks are edging higher at the time of writing (both FTSE Eurofirst 300 and FTSE 100 +0.3%). Food giant Nestlé and drinks maker Diageo are down after reporting weaker than forecast quarterly sales growth. Miners are still under pressure on the FTSE 100 as falling commodity prices are top of mind. Concerns for the strength of the UK economy have been renewed following yesterday’s Office for National Statistics report, which revealed a total of 2.56 million people are unemployed in the UK, raising the unemployment rate to 7.9%.