Surge in iron ore may boost commodity stocks
Announcement posted by de2 Communications 22 Apr 2016
22 April 2016 - SYDNEY: Commodity stocks stand to gain as iron ore prices surged overnight.
"The big story overnight was a further 8.8% surge in iron ore prices, with the bulk commodity now fetching $70.46 a tonne," said Chris Conway, Head of Research at the Australian Stock Report.
According to Conway, since bottoming in December, iron ore has rebounded 84%, surprising many pundits who forecast further losses in 2016.
"Unsurprisingly, the big miners and commodity linked plays should fare well again today," he said.
Hopefully the gains emanating out of that sector are enough to counter the bearish leads provided by Wall Street overnight.
Recapping last night's action, U.S. stocks closed lower breaking a three-session winning streak.
Big declines in defensive sectors such as consumer staples, telecoms and utilities weighed on the main indexes.
Traders digested a number of mixed earnings reports while oil retreated after two days of strong gains.
The S&P 500 ended 10.92 points (-0.5%) lower at 2,091.5, with nine of its
10 main sectors closing with losses, led by telecoms and utilities.
The Dow Jones dropped 113.8 points (-0.6%) to 17982.5.
The Nasdaq declined 2.2 points (-0.1%) to 4945.9.
Aside from the big move in iron ore, crude oil pulled back after its string of gains, giving up 2.4%, whilst gold added a modest 0.3%.
The Aussie dollar failed at the 78 handle overnight, giving up more than half a cent. This morning the local unit is fetching 77.4 US cents.
- ENDS -
"The big story overnight was a further 8.8% surge in iron ore prices, with the bulk commodity now fetching $70.46 a tonne," said Chris Conway, Head of Research at the Australian Stock Report.
According to Conway, since bottoming in December, iron ore has rebounded 84%, surprising many pundits who forecast further losses in 2016.
"Unsurprisingly, the big miners and commodity linked plays should fare well again today," he said.
Hopefully the gains emanating out of that sector are enough to counter the bearish leads provided by Wall Street overnight.
Recapping last night's action, U.S. stocks closed lower breaking a three-session winning streak.
Big declines in defensive sectors such as consumer staples, telecoms and utilities weighed on the main indexes.
Traders digested a number of mixed earnings reports while oil retreated after two days of strong gains.
The S&P 500 ended 10.92 points (-0.5%) lower at 2,091.5, with nine of its
10 main sectors closing with losses, led by telecoms and utilities.
The Dow Jones dropped 113.8 points (-0.6%) to 17982.5.
The Nasdaq declined 2.2 points (-0.1%) to 4945.9.
Aside from the big move in iron ore, crude oil pulled back after its string of gains, giving up 2.4%, whilst gold added a modest 0.3%.
The Aussie dollar failed at the 78 handle overnight, giving up more than half a cent. This morning the local unit is fetching 77.4 US cents.
- ENDS -