Mining Stocks Extend Global Rebound as Zinc Climbs Among Metalsby
Bloomberg Mining Index posts first five-day gain since October
Weaker dollar after Fed minutes continues to support metals
Mining shares extended a global rebound, with the world’s biggest producer BHP Billiton Ltd. reaching a six-week high in Australia and copper miner Oz Minerals Ltd. hitting a three-year peak. Zinc advanced.
Raw materials producers are continuing a rally that gathered pace after a successful refinancing by Glencore Plc on Wednesday. The Bloomberg World Mining Index rose to post its first five-day increase since October, gaining more than 9 percent over the period and reversing losses this year.
“There has been a broad sweep change that comes when markets begin to bottom out,” said David Lennox, a market analyst at Fat Prophets in Sydney. “Risk-on is on, and of course the dollar going down also helps. But a lot of the factors that have impacted commodities generally are still in place. There are still supply surpluses across a number of commodities.”
The Bloomberg Dollar Index weakened for a second day, dropping 0.1 percent following a 0.5 percent decline on Wednesday, on signs the Federal Reserve will slow the pace of expected U.S. interest rate rises.
* BHP Billiton closed 6.1 percent higher in Sydney and Rio Tinto Group added 3.1 percent. Oz Minerals rose 5.7 percent to the highest since April 2013.
* Zinc in London was up 1.3 percent to $1,667 a metric ton by 3:56 p.m. Shanghai time, and closed 0.4 percent higher on the Shanghai Futures Exchange.
* Copper hovered between small gains and losses in London, and rose 0.6 percent in Shanghai.