Mining companies flying high

London’s equity benchmark is up 0.9% as mining stocks get a lift by positive manufacturing figures from China.

China’s manufacturing PMI came in at 50.1 in August, comfortably ahead of analysts’ expectations for a reading of 48.3, to confirm a large turnaround in Chinese manufacturing.

July’s reading had dropped to an 11-month low, but this latest update swung to a four-month high. Mining stocks have broken a three-day losing streak after the positive report, and should Chinese manufacturing continue to expand natural resource stocks go trade higher.

Despite reporting a 35% drop in first half pre-tax profit Kazakhmys is now up 1% – the miner’s financial problems are well known but the positive news out of China has given the sector a boost.

Just ahead of the US open, the Dow Jones is forecast to open 30 points higher at 14,927. The Federal Reserve remained divided over when to begin tapering its stimulus package, and with some traders taking the view that it won’t start until December, there is a more bullish sentiment today.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.