Market News & Analysis
Miners catch China cold
Fiona Cincotta November 11, 2019 10:13 AM
Any sneeze in China and mining stocks catch a cold. The escalation of protests in Hong Kong and President Donald Trump's rebuffal of comments that the US would remove some of the tariffs on Chinese imports have boosted fears that the fallout of the tensions would impact Chinese economic growth and, by extension, metal demand. Anglo American, Rio Tinto, Glencrore and BHP Group are all flashing red this morning, trading between 1.87% and 2.44% lower.
Sterling shrugs off GDP decline
The pound is holding its ground for the moment in the face of worsening UK economic data showing that the economy rose at the slowest rate since 2010. The numbers were not unexpected – the majority of Britain’s economic indicators have been pointing in that direction for months – but what did fuel concerns is that the monthly growth rate was even below some conservative growth estimates. The election campaign is heating up with promises of some serious spending from both major parties but the markets seem to be handling them with a healthy pinch of salt. Sterling is trading at $1.2803 and at EUR1.16.
Brent crude nudges lower as prospect of OPEC slips away
The next OPEC meeting in Vienna is now just over two weeks away and the pre-OPEC production chatter is intensifying, showing that producers are less than keen to opt for further production cuts despite the recent weakness in oil prices. Oman’s energy minister clarified the situation Monday saying that while the cartel is likely to continue with the existing cuts it was unlikely to curb production any further. Given the already fragile situation surrounding the US-China trade talks and prospects of lower demand from China, Brent crude prices dropped 1.17% this morning.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.