Swept up in general market euphoria
The positives of a falling oil price for miners struggling to keep down costs amid falling commodity prices and perhaps a realization that recent falls may have been overdone appear to be filtering through to the market. Reassuring words from the Federal Reserve about the state of the U.S. economy also boosted sentiment.
American depository receipts of the top three miners trading in New York were swept up in general market euphoria amid a surge in US stocks markets, which enjoyed their best day for the year.
World No. 1 BHP Billiton (NYSE:BHP) jumped 2.3% despite relying on oil and iron ore for more than three-quarters of earnings, top iron ore miner Vale (NYSE:VALE) added nearly 4% and Rio Tinto (NYSE:RIO) climbed 4.8% adding almost $3 billion in market value on the day.
Teck was the best performer of the diversified heavyweights adding 10.5% after an analyst upgrade and restart of its Washington zinc-lead mine
Swiss-based Glencore (LON:GLEN) is not traded in New York and lost out on the bonanza. The world's fourth largest miner after absorbing X-strata last year moved sideways in London, but with a 6% decline in value this year is outperforming peers which are nursing falls of between 50% (Vale) and 20% (Rio Tinto) year to date.
Anglo American (LON:AAL) shares moved nearly 2% for the better while Canada's Teck Resources (TSX:TCK) was the best performer among the diversified heavyweights adding 10.5% after an analyst upgrade and news of its first shipment of zinc and lead (together with nickel the best performing metals this year) from its restarted Pend Oreille mining operations in northeastern Washington state.