Trump’s trade war rocked global markets this week, but for investors in Australian mining stocks there could be a window of opportunity that no-one seems to have yet peaked through: the opportunity in rare earths, or more specifically the fact that China has them and US industry must have them.
Lithium stocks, after suffering a few months of uncertainty about the potential for over-supply of the battery metal, got a double boost this week when two of the world’s leading investment banks, Goldman Sachs and Credit Suisse, said it was time to buy, not sell.
Seven words from two investment banks should boost investor confidence in tricky times, with UBS this week advising clients to “stay the course” despite an uncertain international market and Macquarie Bank noting that in the resources sector “the upgrade cycle rolls on”.
One deal does not a rush make. But when South 32 this week lobbed a spectacularly generous bid for a promising US zinc explorer, the keenly awaited outbreak of takeover season in the mining sector came a step closer.
Copper and nickel staged a two-horse race on the Australian stock market this week with copper winning by a nose, but with most companies exposed to the metals enjoying strong support, led by Sandfire Resources in copper and Independence in nickel.