What’s driving the rebound in mining stocks and gold?
Upbeat data on Chinese imports and forex reserves suggest the global upswing will continue
Mining stocks on the JSE rebounded on Monday on firmer commodity prices, but dollar uncertainty has raised questions about how sustainable the recovery will be. The dollar is expected to strengthen further on a US rate hike this week, but unexpectedly slipped to $1.06/€ last week after it appeared poised to break through $1.05. Commodities usually weaken on a stronger dollar. Commodities and minings stocks retreated sharply last week ahead of the expected US interest rate hike on Wednesday, led by oil. However, miners started the week on a strong note following upbeat comments by Chinese officials on the prospects of the economy, increasing hope that global growth would remain strong.
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