Sector movers: Miners jump, copper futures rally on China news

Mining shares soared at the end of the week following news that Beijing would approve the use of BioNTech's mRNA Covid-19 vaccine for use among the expatriate population in the People's Republic of China - although some analysts in the City sounded a skeptical note.

During German Chancellor Olaf Scholz's visit to Beijing, he and Chinese leader, Xi Jinping, also broached a pathway for approval of the vaccine for use among the wider Chinese population, The Wall Street Journal reported.

Notably, the US dollar spot index slipped 1.45% to 111.29 on the back of news, even as US non-farm payrolls for October printed ahead of economists' forecasts.

Linked in part to the move in the Greenback, but above all on hopes that China might be moving towards a greater reopening of its economy - with all the positive spillover effects for global supply chains that might entail - December copper on COMEX shot 6.97% higher to $3.667 a pound.

Similarly-dated gold futures were up 2.7% alongside to $1,674.90/oz. with those for silver posting a similarly-sized advance.

Front-dated Brent crude oil was also on the up, climbing by 3.36% to $97.85 a barrel on the ICE.

From a bird's eye view, the Bloomberg Commodity Index was climbing 2.73% to 252.67.

"These reports, which still haven’t been confirmed in any official capacity, have prompted a huge relief rally in equity markets, despite concerns that any reopening is unlikely to happen in the immediate future, and the very real risk that it is merely a sucker’s rally," said Michael Hewson, chief market analyst at CMC Markets UK.

"As we head into the winter months it seems highly improbable that China would be able to reopen its economy in any meaningful or sustainable way without triggering a more widespread outbreak of Covid infections. Notwithstanding all that investors are piling in just in case, in a classic case of FOMO, fear of Missing Out."

Chris Beauchamp, chief market analyst at IG, appeared to be a bit less skeptical.

"Risk appetite has recovered impressively from its mid-week nadir, on hopes that a recovery in China will help to offset the continued dark clouds that hover over European and US markets," Beauchamp said in a research note sent to clients.

Top performing sectors so far today

Precious Metals and Mining 9,712.41 +7.41%

Industrial Metals & Mining 7,217.10 +7.05%

Personal Goods 30,908.64 +5.02%

Life Insurance 6,184.55 +4.82%

Chemicals 11,443.70 +4.51%

Bottom performing sectors so far today

Aerospace and Defence 4,815.85 -0.74%

Medical Equipment and Services 10,722.11 -0.18%

Alternative Energy 0.00 0.00%

Alternative Investment Instruments NULL 0.00%

Automobiles and related providers NULL 0.00%