Overview: the FTSE 100 slipped into the red this morning after the UK’s CIPS (Chartered Institute of Purchasing and Supply) index update revealed a decline to 49.5 from 49.7 in August instead of an expected increase to 50.2, reflecting a contraction of factory activity in the country. The CIPS index fell into the same pattern as Chicago PMI, which was released yesterday and also showed fall in factory activity in Midwest, falling to 46.1 instead of the projected increase to 52 to send global stock markets sliding. Falls in the mining sector further weighed down the blue chip index, which stood about 25 points below the opening level at midday. Defence systems manufacturer BAE Systems (LSE: BA) emerged as the leading faller with a 4.7% dip in anticipation of a decision by the government’s fraud watchdogs on whether it will be investigated for alleged bribery. Platinum miner Lonmin (LSE: LMI), weakened by a Deutsche Bank downgrade, followed with a loss of over 4%, also emerging as the leading faller in the mining sector. Commercial property company Segro (LSE: SGRO) also switched to selling more, losing 2.6%. Indian miner Vedanta Resources (LSE: VED) was strong following an update by Deutsche Bank, making it to the top of the leaderboard with a 4.2% rally, while most sector peers switched to selling mode. Home Retail Group (LSE: HOME) recovered from its recent losses, gaining 1.6%. Credit information group Experian (LSE: EXPN) added 1.5%, as did technology firm Smiths Group (LSE: SMIN). Airline British Airways (LSE: BAY) and commercial property company British Land (LSE: BLND) also did well, tacking on 1%. Commodities Oil prices were at about the same level with November Brent Crude inching slightly lower to US$68.74 per barrel, while US light, sweet crude for November delivery rose to above US$70/barrel. Major oil stocks were in decline in the morning. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) both opened with marginal losses, as did fellow FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE). Petrofac (LSE: PFC) rose marginally, while Tullow Oil (LSE: TLW) outperformed other blue chips with a 1% climb. In the FTSE 250, Dragon Oil (LSE: DGO) and Dana Petroleum (LSE: DNX) both were in decline, shedding 1.2% and 2% respectively. Heritage Oil (LSE: HOIL) managed to stay on positive ground with a small gain. Most juniors rose in early trade. Enegi Oil (LSE: ENEG) hiked over 30% after saying it would resume production from a previously shut-in well at the Garden Hill South prospect. Energy investor Xract Energy (LSE: XTR) also did well, adding 7%. EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG), Kazakhstan operating Max Petroleum (LSE: MXP) and North American based explorer Nighthawk Energy (AIM: HAWK) all added more than 2%. Ukraine focused gas producer, Regal Petroleum (AIM: RPT) was the leading faller among the small caps, losing over 10% following a drilling update from Ukraine. Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) and North American focused oil & Gas junior, Pantheon Resources (AIM: PANR) also were in decline, shedding over 2%. Precious metals Precious metals inched lower in the morning with Gold delcining to US$1,003/oz, while Silver retreated to US$16.56/oz and Platinum slid to US$1,285/oz. All blue chip miners were in decline today. Platinum miner Lonmin (LSE: LMI), which was downgraded to “sell” from “hold” by Deutsche Bank, was the leading faller, shedding 3.9%. Silver producer Fresnillo (LSE: FRES) followed with a 2.6% retreat, while gold miner Randgold Resources (LSE: RRS) lost 1.7%. Specialty chemicals firm Johnson Matthey (LSE: JMAT) declined 1.2%. Mid cap miners did slightly better. Gold miner Petropavlovsk (LSE: POG) opened with marginal losses, while silver producer Hochschild Mining (LSE: HOC) and Aquarius Platinum (LSE: AQP) were in the black with small gains. Australian gold and copper prospector Solomon Gold (AIM: SOLG) emerged as one of the leading risers in the sector with a 10% rally. South American mineral exploration company Mariana Resources (AIM: MARL) and South East Asia focused Metals Exploration (AIM: MTL) both climbed 4.5%. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) also was on the rise, tacking on 3.7%. Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) went in a different direction, shedding over 6%. Copper and gold miner EMED Mining (AIM: EMED) and Africa operating gold and platinum miner Goldplat (AIM: GDP) both lost more than 4%. Western Australia operating Norseman Gold (AIM: NGL), London listed Australian gold producer Leyshon Resources (AIM: LRL) and commodity asset development company Mercator Gold (AIM: MCR) were down 3%. Base metals Copper inched lower to US$2.77/pound, while Nickel iproved to US$8.05/pound. Zinc was close to US$0.87/pound. All major base metals focused mining stocks fell in the morning, but Vedanta Resources (LSE: VED) managed to climb 4.4% after Morgan Stanley raised its target price for the company to 2,632 pence from 2,312 pence. Copper miners Antofagasta (LSE: ANTO) and Kazkahmys (LSE: KAZ) fell 3.4% and 1.7% respectively. Anglo-Swiss miner Xstrata (LSE: XTA) and Eurasian Natural Resources (LSE: ENRC) also shed 1.7%. The world’s largest miner BHP Billiton (LSE: BLT) and Anglo American (LSE: AAL) both retreated 2.7%. Rio Tinto (LSE: RIO) lost 2%. London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) posted gains early in the day after Deutsche Bank upgraded it from “hold” to “sell,” but slipped back into the red later as the sector declined. Southern African focused Strategic Natural Resources (AIM: SNRP) led the juniors with a 6.8% climb. Russian focused copper and nickel miner Amur Minerals (AIM: AMC) followed with a gain of about 5.6%. South Africa operating chrome miner Chromex Mining (AIM: CHX) lost 5%.

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