Boost for mining firms as China stalls stock market routComments Off on Boost for mining firms as China stalls stock market rout
Rio Tinto, BHP Billiton, Anglo American and Glencore — also helped by a broker upgrade — were among the FTSE 100’s biggest risers as the Chinese market rallied for a second day.
After a month of turmoil triggering a 30% fall in just three weeks, the biggest companies listed in Shanghai and Shenzhen jumped more than 5%.
Beijing has banned big shareholders from selling over the next three months and waded into the market to buy up shares through brokers.
That has calmed the nerves of the market, as well as fears that a sharp blow will be dealt to China’s resource-hungry economy.
Copper bounced back 2% today after hitting a six-year low on Wednesday, while iron ore prices also recovered.
Retail investors hit by the rout are, however, set to rein in spending.
China’s national association of car makers slashed its forecasts for sales growth this year to just 3% after a poor first half.