Mining stocks rise as copper trades near a decade high


Mining stocks rose on Thursday, gaining momentum as copper futures rose as European equity markets generally struggled to get their bearings.

Rio Tinto RIO,
+ 2.92%
shares rose 4% as other miners, including KGHM Polska Miedz KGH,
-0.80%,
BHP Group BHP,
+ 1.87%,
and Antofagasta ANTO,
+ 1.98%
cattle, with HG00 copper futures,
+ 2.34%
increasing almost 4%. The copper contract on the London Metal Exchange hit its highest level since April 2012.

The more comprehensive Stoxx Europe 600 SXXP,
-0.33%
It reeled between gains and losses, losing 0.1% mid-morning after two days of declines. Stocks are starting to struggle, with the US 10-year benchmark Treasury yield rising in hopes that the global economy will pick up.

“Momentum has started to wane as the tech sector slowed US equities and 10-year Treasury yields TMUBMUSD10Y,
1,286%,
and the DXY dollar,
-0.27%
it’s being driven by positive US retail sales numbers, ”said Rony Nehme, chief market analyst at Squared Financial.

US stock futures ES00,
-0.44%
were weaker heading into Thursday’s session, which will feature WMT from retailer Walmart,
+ 1.06%
earnings, a busy list of economic publications, and a Congressional hearing on video game retailer GameStop GME,
-7.21%.

Traders in Europe took in a busy profit list.

Airbus AIR,
-3.51%
Shares fell 4% as the European aircraft maker forecast it would deliver the same number of aircraft and equilibrium free cash flow. It is targeting an adjusted profit before interest and taxes of € 2 billion, after earning € 1.7 billion to the same extent in 2020 and € 6.95 billion in 2019.

Smith and nephew SN,
-5.04%,
the medical equipment maker, fell 5% as the company said its profit margins for 2021 will be worse than in 2019, due to reduced production volumes, increased investments in research and development, acquisitions and exchange movements.

Varta VAR1,
-12.36%,
the automotive battery company, fell 10% amid a 145% increase in adjusted operating profit on a 140% increase in revenue for 2020 and the decision to pay a special dividend of € 2.50 per share. Nonetheless, Varta shares have risen 67% in the last 12 months.

Temenos TEMN,
+ 16.88%
The shares rose 14% as the Swiss business software maker forecast revenue growth of 10-15% through 2025, ahead of the capital markets session.

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