Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks Struggle; Iron Ore Collapse Hits Miners

By CMC Markets (Jasper Lawler)Market OverviewMay 10, 2016 08:15
uk.investing.com/analysis/stocks-struggle;-iron-ore-collapse-hits-miners-200128902
Stocks Struggle; Iron Ore Collapse Hits Miners
By CMC Markets (Jasper Lawler)   |  May 10, 2016 08:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

UK and Europe

European stocks were mostly firmer on Monday, though a reversal in commodity prices erased much of the early gains.

Free-falling iron ore and copper prices are a serious headwind to FTSE 100 mining stocks. Shares of Anglo American (LON:AAL) crimpled as much as -12%.

Industrial metals dropped heavily last week and have added to losses on Monday. Chinese stockpiles of Iron Ore have risen to the highest in over a year after regulators clamped down on speculation within metals futures markets.

The latest Chinese trade data further softens the global growth outlook. A report in Chinese newspaper ‘People’s Daily’ is causing some concern amongst those wishing for Chinese stimulus to carry the global economy out its recent slowdown. An “authoritative person” has suggested China abandon the idea of loosening money conditions to accelerate economic growth.

The Greek parliament approving pension and tax reforms is one hurdle jumped before the indebted country can receives its next bailout tranche in time to pay debts due in June. A stalemate over “contingency measures” as well as the ongoing debate over debt relief suggests nothing will be agreed at a meeting with creditors on Monday.

Broker upgrades to AstraZeneca (LON:AZN) and Smith & Nephew (LON:SN) helped healthcare sector gains whilst travel and leisure firms TUI (LON:TUIT) and EasyJet (LON:EZJ) gained ahead of earnings this week.

US

US stocks were flat in early trading with Chinese growth, oil and corporate earnings all in focus as investors continued to digest the implications of last week’s payrolls data.

Shares of Lending Club tanked 25% after the peer-to-peer lending website said its CEO Renaud Laplanche had resigned for violating the company’s business practices.

Warren Buffet’s Berkshire Hathaway (NYSE:BRKa) dropped after the holding company missed top and bottom line estimates.

Facebook (NASDAQ:FB) shares were unmoved after the social network won a copyright battle in a Chinese courts. The legal victory could be a sign that CEO Mark Zuckerberg currying favour with Chinese officials is having some positive effect. Getting inside the great firewall of China would be very lucrative for Facebook but the company is conscious of public opinion surrounding censorship.

FX

Dollar strength was concentrated in commodity currencies as metals prices from iron to copper to gold were crushed on Monday. The yen weakened after the Japanese finance minister said authorities were ready to intervene if yen moves became too volatile. It’s probably a fair assumption to say he was referring to downside volatility in USD/JPY.

German factory orders rose 1.9% m/m in March. The data has had little impact on the euro since more recent economic releases have shown a slowdown started in April.

The British pound unwound initial gains as Brexit rhetoric was stepped up a notch by PM David Cameron who suggested Britain exiting the Eurozone could lead to war.

Commodities

Commodities as a pack came in for a royal drubbing on Monday. Weak Chinese trade data added to recent weakness brought on by a clampdown on commodity futures trading in China.

Output-limiting Canadian wildfires, a new Saudi oil minister and a report showing new oil discoveries at a 60-year low had been assisting higher crude prices since Friday. However, a collapse in dollar-denominated commodities took its toll on crude oil which fell in unison.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Stocks Struggle; Iron Ore Collapse Hits Miners
 

Related Articles

Stocks Struggle; Iron Ore Collapse Hits Miners

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email