Interest rate worries sink US boards

Downbeat economic news, high crude oil prices, and the expectation that the U.S. Federal Reserve would increase interest rates brought U.S. stock markets lower in the reporting period Aug. 4-9. The S&P 500 Index fell 34.47 points, or 3.1%, to 1,065.22, and the Dow Jones Industrial Average slid just over 3%.

Sure enough, the Fed nudged the discount rate a quarter-point to 1.50%, and oil prices touched US$45 a barrel on Aug. 10. Fear of a possible economic slowdown told in the base metal equities, with shares of all the big producers losing ground. Proportionate to price, Southern Peru Copper took the most punishment, falling US$2.62 to US$36.18. Freeport-McMoRan Copper & Gold wasn’t far behind, slipping US$2.28 to US$31.64, while WMC Resources was off US68 at US$14.11 and Phelps Dodge, US$2.96 at US$74.12.

The Big Three escaped with smaller losses, with Rio Tinto down US$2.35 to US$102.65; Anglo American, US41 to US$21.32; and BHP Billiton, US20 to US$18.53.

The big golds were mostly lower, but the biggest bucked the trend: Newmont Mining added US34 to finish at US$40.71 and AngloGold Ashanti was US11 better at US$33.09. Strength in the rand continued to be a factor with many South African gold producers, as Gold Fields tracked US6 lower at US$10.58, Harmony Gold Mining fell back US24 to US$10.75, and Durban Roodepoort Deeps slid US17 to US$2.38.

Among mid-tier producers, there were a few winners: Lihir Gold advanced US30 to US$15.90; Coeur d’Alene Mines rose US8 to US$3.45; and Canyon Resources picked up a nickel to finish at US$4.20.

Print

Be the first to comment on "Interest rate worries sink US boards"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close