JPMorgan, Nomura Recommend Buying European Mining Stocks After Declines

European mining stocks were raised to “overweight” by JPMorgan Chase & Co. strategists including Mislav Matejka, who wrote in a report that the basic-resources industry is the only one geared to economic growth to have underperformed the market this year.

Separately, analysts at Nomura Holdings Inc. also wrote that metals and mining shares in Europe have fallen too far “while fundamentals remain strong.” Stocks are reflecting possible further declines in metals, Nomura wrote, that may not materialize as China may lower borrowing costs in the second half of this year.

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