The Dig – Haywood Mining Team’s week in review

POSTED ON September 05, 2014 BY Haywood Mining Team
CATEGORY Mining,

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Markets Tapped Out on Lackluster Economic Data: As Mining Sentiment Softens

Mixed signals across multiple geopolitical forums, a building NATO response to the Ukraine Crisis, building ECB monetary stimulus of the Euro and tepid US economic data during the week have conspired to lead markets into the red for the week, and comes despite EU market indices initially running higher after the ECB announced reduction in key benchmark rates. Ukraine-Russian tensions continue to broaden their impact with waves of counter sanctions and pledges from EU nations building a NATO rapid reaction force. Going into the weekend, a cease-fire agreement between the Ukraine and Pro-Russian separatists appears to have been negotiated and is due to kick-off at 6 pm Friday night (local time). Mining equities have taken it on the chin this week as gold dropped close to 2% despite winning temporary support after the ECB announcement to cut benchmark rates and the release of weaker than expected US non-farm payroll data for August (142,000 vs 223,000). The Dow Jones finished down at 17,137 for the week, and the S&P500 closed at 2,008. The S&P/TSX Venture declined to 995 while the S&P/TSX closed down at 15,570. For commodities, nickel witnessed an increase to US$8.84 per pound on political grandstanding in the Philippines. Precious metals declined with gold trending lower, closing down 1.5% to US$1,267 with silver following in tow down to US$19.22 per ounce. Wrapping up the precious metals, platinum and palladium each finished the week at US$1,410 and US$889 per ounce respectively. Copper was down marginally to $3.17 per pound, while zinc was up marginally, finishing at $1.08 per pound.

Here's what is in the Dig this week:

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Haywood Mining Team

Canadian mining companies have been among the industry leaders, creating new exploration and development undertakings and drawing on their recognized production expertise to generate new opportunities. Our mining research team follows all segments of this sector, covering base and precious metal sectors for large and small-cap companies. Haywood's mining sector coverage also continually seeks opportunities in the dynamic Canadian junior market sector, one that has a rich culture in exploration and development. More →

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Haywood Mining Team

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