Glencore is the top riser, adding 9.56% and ultimately defining the old adage ‘coming off a very low base’. What is notable is that copper prices do appear to be stabilising a little with the $2.20/lb mark still holding firm as a decent demand zone. From a technical perspective, copper is not oversold but looks to be displaying a degree of bullish divergence which could be a precursor to a near term bounce in the metal. Given that the price has declined over 10% in the past 12 days, a squeeze higher cannot be ruled out from here. The question is whether it will come in time or indeed in enough substance to allay Glencore’s demise. Yesterday’s move was doubtless overdone on absolutely no news.Other equity highlights:
Rio Tinto; (+1.23%) Antofagasta (+1.50%), Anglo American (+1.36%).
Glencore; (+9.56%) Bernstein keep their target price of 450p on the stock while Citi believe that should this demise continue that there will be a management buyout. Little more than a dead cat bounce for the time being.
Wolseley; (-12.15%) despite the company announcing a £300m share buyback and an 18.3 per cent rise in full year revenues investors are more focussed on the cautious outlook. This has essentially erased the YTD gains for the firm.