Materials Stocks Strong As Dollar Weakens - Materials Roundup
Shares of commodities producers rose as the dollar weakened in light of a tax-cut plan. The proposed tax overhaul from President Donald Trump's administration would drive up the deficit, potentially weakening the greenback. The value of copper and other metals that are denominated in dollars but traded worldwide rose, reflecting the changes to the exchange rate. But copper may be in for a correction as Chinese officials could take measures to control the recent price increases, warned analysts at brokerage Barclays. The performance of gold mining shares have lagged that of gold prices for 15 years and expensive project developments suggest this trend could continue, said analysts at brokerage Morgan Stanley, in a research note. The fact that recently mined gold is only one factor in pricing given the abundant above-ground supplies "make it all the more important to deploy capital into only the highest-return projects with low capital intensity that still generate returns when prices fall," said the Morgan Stanley analysts.
-Rob Curran, email@example.com
(END) Dow Jones Newswires
September 28, 2017 16:29 ET (20:29 GMT)