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