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Shares in Glencore are faring best as the UK Index aims for 6200 thanks to a jump in Copper prices close to March highs (the stock is still a red-metal proxy), with the commodity outperforming peers in response to a surging rebound in Japanese Machine Orders (although these are notoriously volatile) as well as continued faith in more Chinese stimulus being forthcoming. The latter comes after yet another batch of more poor macro data over the weekend with both industrial Production and retail Sales posting weaker growth than in Jan. However, Fixed Asset Investment did improve, which is a positive for miners like Glencore. All this while the new Chinese stock market regulator reassured that he will keep propping up equities. At odds with the old adage “no news is good news”, it would appear it’s more a case of “all news is good news” when it comes to China.
Mike van Dulken, Head of Research, 14 March
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