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At the front of the pack this morning are Copper miners (Antofagasta, BHP Billiton, Evraz, Glencore, KAZ Minerals, Vedanta Resources) seeing share prices increase upwards of 5% as the post-Trump commodity rally continued through the night.
A 4.4% rally in the price of the metal so far today follows on from yesterday’s 5th consecutive positive session, with the weekly gain upwards of 13% despite USD strengthening to November highs. Trump’s promises to increase infrastructure spending in his victory speech yesterday (pledging to begin the urgent task of rebuilding America) came alongside a perceived change in demeanour from the President Elect, forcing markets worldwide to reassess their view of the connotations of seeing ‘the Donald’ in the Oval Office.
Positive first half results from Vedanta (VED) this morning, reaffirming their full year dividend expectations, alongside a spate of ratings upgrades for itself and peers from the wider mining sector by Jefferies, have helped its share rise a phenomenal 14%. UK 100 dual-listed miner BHP Billiton (BLT) enjoyed a stellar session during overnight trading in Australia that shows no signs of letting up this morning. Breaking the 1350p mark for the first time since June 2015, this latest milestone marking a 236% rally from its January lows.
As the 2016 commodity rally shows no signs of letting up and with an (apparent) spend-happy, UK trade friendly US President taking office on January 20, momentum is continuing to build for UK miners into the final few weeks of the year.
Henry Croft, Research Analyst, 10 November
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