CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Anglo American and Antofagasta to ride out copper volatility

Article By: ,  Senior Market Analyst
October 21, 2019 8:19 AM
Anglo American and Antofagasta are expected to update the market this week with third quarter production update. Anglo American on Tuesday and Antofagasta on Wednesday. 

US – Sino trade dispute
Shares in both firms have been trending lower over the past six months as tension between US and China have been ratcheting up. 
Why? Both firms are prominent miners of copper. Copper prices have been depressed as the world’s two largest economies and major importers of copper remain clinched in the ongoing trade dispute.

Anglo American
The chart clearly shows just how closely Anglo American tracks the price of copper. However, Anglo American could be better positioned now to ride out the volatility in copper thanks to its platinum groups metal division. This division has recently turned a corner so could offer more of a helping hand. This is down to increasing demand for palladium, which is used in batteries and thanks to rising demand for platinum amid a strong precious metals market.

Anglo has recently crossed its 200 sma, potentially indicating that trend is shifting up. We are looking for a break above 2000p, which could open the door to 2120p


Antofagasta
Antofagasta are expected to record production figures, following 22% growth in the first half of the year. Antofagasta has managed to perform well despite falling copper prices, thanks to increasing its gold output. Unlike copper, gold has been performing very well amid increased geopolitical uncertainty.

However, when Antofagasta releases its update, investors won’t just be scrutinizing the numbers, they will also be looking closely for any indication of improving relations with employees. Antofagasta narrowly avoided a walk out at its mines in Chile after agreeing to increase wages by 1%.

Antofagasta has meaningfully moved through the 200 sma. We are looking for a push above 910 to confirm the bullish trend. On the downside resistance can be seen at 810p.



StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024