Sector movers: Miners among best performers amid talk of possible China stimulus
Industrials Metals and Mining stocks lent their heft to Tuesday's advance on the FTSE 350, buoyed by a report that authorities in China were considering fresh fiscal stimulus.
Of the plans, a decision on which may come before November, "the news is alleviating some lingering concerns about the health of the world's second largest economy," Tom Essaye, the founder of Sevens Report Research, told Dow Jones Newswires.
Copper futures however failed to catch a bid, drifting lower by 0.11% to $3.63/lb. on COMEX.
Of the move in copper, analysts at SP Angel said: "Analysts expect China was ‘buying the dip’ yesterday following a week’s holiday, although this muted recovery may be raising warning flags to traders."
The broker also noted how higher interest rates might be weighing on traders' appetite with buyers left with no choice but to sell some holdings in order to meet margin requirements.
Top performing sectors so far today
Industrial Transportation 3,663.53 +4.24%
Travel & Leisure 6,881.06 +4.04%
Industrial Metals & Mining 6,523.97 +3.45%
Automobiles & Parts 1,543.37 +3.20%
Chemicals 8,758.35 +3.09%