What You Need To Know About Base Metal Stocks
This morning, all of the major stock indexes are trading lower to start the day. One important sector that is declining lower today is the base and industrial metal stocks. This sector is very closely related to the Chinese economy. China has been the growth engine of the world until last year when the Chinese economy began to slow down. This is exactly when the base and industrial metal stocks topped out. Often, when the Chinese stock market comes under selling pressure the base and industrial metal stocks will trade lower. Recently, there have been many rumors that the Chinese government would begin to stimulate (inflate) their economy, however, the important Shanghai Index (Chinese stock market) has sold all short term bounces. The weak China economy has kept the leading base and industrial metal stocks somewhat depressed.
One leading base and industrial metal stock that is trading lower today is Freeport McMoRan Copper & Gold Inc (NYSE: FCX). Today, FCX stock is declining lower by 0.62 cents to $37.87 a share. Short term traders should watch for intra-day support around the $37.65, and $37.40 levels.
Please remember, all of the base and industrial metal stocks will generally trade inverse to the U.S. Dollar Index, therefore, should the dollar decline the base metal stocks could catch a bid. Some other leading base and industrial metal stocks that are declining lower today include Rio Tinto plc (ADR) (NYSE: RIO), BHP Billiton Limited (ADR) (NYSE: BHP), Teck Resources Ltd (USA) (NYSE: TCK), and Vale SA (ADR) (NYSE: VALE).
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.