LONDON, April 25 (Reuters)- Worries over rising bond yields and
falling metals prices trumped well - received earnings updates from Kering and Credit Suisse on Wednesday, sending European shares to a one - week low.
[NB:
Falling metal prices aren't necessarily a direct risk for metals recycling, as the business is structured to hedge / pass along market - based pricing.
Not exact matches
However, if the economy improves the
metal's
price can
fall dramatically.
Basic resources jumped 1.22 percent as a sector, supported by an uptick in
metal prices, while oil stocks
fell as investors doubt that the recent rally in
prices will last.
LONDON, April 20 - Aluminium
prices fell on Friday for a second day as a rally sparked by U.S. sanctions against Russia's Rusal, the world's second - biggest producer, appeared to stall, but the
metal was still on track to end the week up 7.5 percent.
Gold has regained its shine in recent months, but that doesn't change the dull outlook for the precious
metal over the longer - term, warns Goldman Sachs, which sees
prices falling to $ 1,000 in 12 months as the Federal Reserve normalizes monetary policy.
Plus, because the company's wires are made of
metal, the
prices it can sell them for are also tied to the market
price of copper and aluminum, which have
fallen steeply since 2011.
The
falls were led by basic resources stocks, down 2.5 percent, amid a slide in
metal prices.
Safe - haven investments suffered: in the
metal markets, silver
prices tumbled more than 6 %, marking their biggest loss since late 2008, and gold
fell more than 2 %, off a record high.
Prices for
metals like copper, of which China is a major buyer,
fell to six - year lows during the past two days.
The nation's biggest aluminum producer will split into two publicly traded companies as it tries to deal with an oversupply of the
metal and
falling prices.
Surging mining stocks and a
fall in the pound boosted Britain's FTSE 100 on Wednesday, with
metals prices climbing on supply concerns and data showing an unexpected dip in inflation.
In the base
metals complex, only nickel and tin traded higher for the quarter.4 A slow start to Chinese restocking coming out of the Chinese New Year holiday weighed on
prices for copper and aluminum, both of which saw their worst quarterly results in years, while zinc and lead
prices also declined.4 The London
Metal Exchange (LME) Index, which tracks the three - month futures prices of all six metals, fell 6.3 %.4 LME copper -LRB--7.4 %, to US$ 6,714 per mt) and other industrial metals erased some of their 2017 gains, falling alongside a sharply decelerating expansion in China's manufacturing activity — sparking demand concerns and greater caution among hedge funds and other speculators who cut their net long positions in the metal.4 Outside the LME, US steel was buoyed by trade policy cha
Metal Exchange (LME) Index, which tracks the three - month futures
prices of all six
metals,
fell 6.3 %.4 LME copper -LRB--7.4 %, to US$ 6,714 per mt) and other industrial
metals erased some of their 2017 gains,
falling alongside a sharply decelerating expansion in China's manufacturing activity — sparking demand concerns and greater caution among hedge funds and other speculators who cut their net long positions in the
metal.4 Outside the LME, US steel was buoyed by trade policy cha
metal.4 Outside the LME, US steel was buoyed by trade policy changes.
Australia's S&P / ASX 200 slipped 1.2 percent to 4,262.30 after
falling prices for
metals hurt mining shares.
Meanwhile, flat gold
prices weren't enough to keep Direxion Daily Junior Gold Miners Bull 3X ETF (NYSEMKT: JNUG)-- a volatile, leveraged bullish bet on the precious
metal — from
falling 5 %.
Adjusted net earnings for the quarter
fell to $ 238 million from $ 923 million in the same quarter a year ago primarily due to lower
metal prices and lower gold sales volumes.
Continued strong gains in rural commodity
prices underpinned the strength in the June quarter, while the base
metals index
fell for the first time since early 1999.
Data from sources such as the
Metals Economics Group (MEG) in Canada and
Price Water house Coopers suggest that global spending on exploration has been relatively weak in recent years, following a sharp
fall in the late 1990s.
While rural and base
metals prices were broadly unchanged over the three months to January, the
prices of «other resources»
fell modestly (Graph 34).
There were increases in the
prices of base
metals and rural commodities of around 10 per cent and 2 1/2 per cent, respectively, which were offset by
falls in the
prices of gold and coal.
However, recent weeks have seen sharp
falls in base
metals prices in response to market concerns over the sustainability of growth in China.
Mine
prices fell faster than the
metal due to lack of corporate interest in deals.
The Monetary
Metals Gold Fundamental
Price fell $ 2 this week to $ 1,507.
Shares in mining and trading company Glencore
fell almost 30 % and closed at a record low on Monday over concerns it is not doing enough to cut its debt to withstand a prolonged
fall in global
metals prices.
In an essay at the Monetary
Metals blog headlined «Backwardation, the Bank of England, and
Falling Prices» --
Although gold
prices have
fallen from their record highs, global economic trends — and in particular, trends in China — would indicate that the precious
metal's value is poised to increase significantly.
Even as gold
prices fell for the first time in 14 years in 2013, BMO Capital Markets of Montreal, Canada, advised its clients in the
metals and mining industry on 17 deals worth a total of $ 6.4 billion in North America — a higher value than any other bank.
Over the past year, the
price of gold
fell by about 13 percent and because of this many financial experts believe 2014 will be the complete end of the yellow
metal's 13 - year bull run.
In contrast to the strength of rural and base
metals prices, other non-rural commodity
prices have tended to
fall in early 1997.
However, with stocks rising on a global scale, the
price of gold has
fallen inversely as it so often does, which has led to a
fall in the stock
price of precious
metal miners.
And the report said the police could look at predictive policing depending on market
prices and whether they start to rise or
fall — especially in the instance of items such as
metals.
Traditional commodity ETFs such as the iShares S&P GSCI Commodity - Indexed Trust (GSG) simply hold long positions in various crops,
metals and energy products, and if commodity
prices fall, so does the value of the fund.
Ultimately holders of GLD will demand physical
metal and the physical
price will rise and the paper
price will
fall.
Thanks to the proliferation of mutual funds, an individual can now not only invest in different «asset classes» of stocks, but also can use funds to invest in precious
metals (usually
metals mining companies / stocks), real estate (REITs), shorting stocks (betting that a stock or asset class will
fall in
price), or other non-stock assets.
That being said, certain of them — such as coins and precious
metals — can rise in
price right when the
prices of conventional assets happen to be
falling.
Following the high of 2011, with gold
prices in excess of US$ 1900 / oz, copper
prices in excess of US$ 10,000 / tonne and iron ore
prices in excess of US$ 190 / tonne,
metal prices crashed and with those
prices fell some of the junior mining companies that depended on them.
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