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Resurgent UK Index Miners are waving the wooden spoon this morning, giving up ground as traders who dared bottom-pick over the last 3 weeks sensibly book some handsome and very welcome 10-40% profits following a helpful combination of USD weakness, short covering, technical breakouts and brokers suggesting a bottom for some base metals. News of a $3bn rights issue by steel giant Arcelor Mittal following a hefty quarterly loss likely reminding traders that sector fundamentals have yet to improve markedly and that, as commodities backtrack from short sharp gains, any bear-market gift-horse gains must be capitalised upon while we wait for confirmation of a bottom for accelerated multi-year declines.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
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