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That is the suggestion made by Joshua Raymond, market strategist at City Index, who observed that equities have been picked up in early stock market trading today (January 29th) following heavy losses.
Speculative buyers have been choosing miners and banks this morning, he explained, with the FTSE 100 now having lost eight per cent from its highs this month.
Randgold Resources was among the firms in demand, after its price target was upgraded by 42p by Goldman Sachs.
Meanwhile, Mr Raymond suggested investors are likely to remain cautious ahead of the announcement of US gross domestic product figures, which takes place at 13:30 GMT and is expected to show growth of 4.6 per cent for the last quarter.
Earlier this week, chief executive of TD Waterhouse Angus Rigby noted that Rio Tinto is among the companies benefiting from the popularity of mining shares at present.
Posted by Greg Secker
