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MarketPulse Europe: Miners Under Pressure as Growth Fears Hit Sentiment

Published 11/22/2018, 06:43 AM
© Reuters.
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Investing.com - The European basic resource sector was among the worst performers in European midday trade on Thursday, as worries over slowing global growth kept buyers on the sidelines.

The pan-European Stoxx 600 Basic Resources index was down 1.6% by 6:40AM ET (1140GMT), approaching a one-month low.

Silver miner Fresnillo (LON:FRES) was the biggest loser, plunging more than 12% in London, after Morgan Stanley downgraded the stock amid uncertainty over its operations in Mexico following the passage of recent legislation, which could restrict mining in the country.

Staying in London, copper producers Anglo American (LON:AAL) and Antofagasta (LON:ANTO) dropped around 4% apiece, tracking losses in prices of the red metal.

BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) also contributed to the downbeat performance for the sector, with their stocks falling 2% and 1.8% respectively.

Singapore became the latest to warn about the potential impact of trade disputes on the global economy. "Risks in the global economy are tilted to the downside," said Loh Khum Yean, Singapore's permanent secretary for trade and industry.

The city state is widely viewed as a bellwether for international trade.

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