Investors began the week defensively today (Monday 15 March), scaling down positions in mining and banking stocks affecting Euro indices.

Eurasian Natural Resources was the stock that tumbled the most today. Its drop of 3.4 per cent to 1133 pence was in keeping with all mining stocks which felt the pain.

Rio Tinto (3,657 pence, down 1.4 per cent) and Antofagasta (1,001 pence, down 3.1 per cent) were also affected while Lloyds Banking Group and Barclays were among the fallers within Financials.

With the FTSE 100 trading below the 5,600 threshold to which it has become accustomed in recent weeks, analysts were predicting further market nerves.

Nick Serff, market analyst at City Index, said that the FTSE trading below this level may prove to put a roof on any further gains and signal further consolidation.

He explained, ‘There has been a few lingering issues on the horizon today such as a potential impending Chinese interest rate hike and the presentation of reforms to financial regulation in the US and it is these lingering issues that have kept investors on the back foot.

‘Commodities have been severely weak on the back of the Chinese interest rate concerns and a strengthening US Dollar. Crude oil and copper prices have fallen around 2.5 per cent and this has triggered losses in the heavyweight mining and energy firms.’

Today’s top trades will follow shortly….