Commodity gloom spreads

U.S. equity markets were generally lower in the report period April 12-18, with the Dow Jones Industrial Average falling back 377.31 points, or 3.6% of value, to close at 10,071.25 points. Even as crude oil prices found a new level around US$50 per barrel, stocks slid back to levels they hadn’t seen since November.

A slightly firmer U.S. dollar counted against the metals in the same period, so gold fell US$2.25, to US$426.90 per oz., and copper fell US8, to US$1.44 per lb. That left few winners among the mining stocks.

Among the golds, Newmont Mining fell US96, to US$40.85, with rival AngloGold Ashanti pulling back US$1.24, to US$33.63. Gold Fields was down US49 at US$10.71 while Harmony Gold slid US23, to US$7.20. Compania de Minas Buenaventura backed up US46, to US$21.40, and Randgold Resources was off US99, to US$11.46.

The only winner on the precious metal side of the market was Anglo American Platinum, which rose US55, to US$38.80, even though platinum was US$1 lower in the same period, at US$863 per oz.

The base metal equities had the same troubles as the golds, particularly the copper-sensitive companies. Phelps Dodge won the race to the drain, falling US$11.26, to US$88.40, but Freeport-McMoRan Copper & Gold was down US$3.04, to US$35.20, and BHP Billiton slumped US$2.59, to US$25.47, both losing around 10% of value.

The best performance among the copper producers was put in by Southern Peru Copper, which lost only a nickel to close at US$55.01. It now effectively trades as a proxy for Grupo Mexico, which announced it would be splitting its shares three-for-one.

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