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Resource Stocks Rally As Commodities Climb

Published 2017-07-25, 09:10 a/m
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Stock markets around the world have been on the rebound overnight as traders react to rising commodity prices and corporate earnings.

A 2.2% gain in the copper price has renewed interest in miners today. The FTSE is up 0.8%, while Australia's S&P/ASX rose 0.6%. With US miners Newmont (NYSE:NEM) and Freeport (NYSE:FCX) reporting earnings today, mining stocks across North America could attract attention.

There have been a number of spectacular earnings reports out so far today led by Caterpillar (NYSE:CAT), which beat the street and raised guidance. DuPont (NYSE:DD), GM (NYSE:GM), Eli Lilly (NYSE:LLY) and United Technologies (NYSE:UTX), in addition to Google (NASDAQ:GOOGL) last night, have also come in strong, indicating that earnings for many companies have been supporting the gains made in share prices so far this year.

The energy sector can't be ignored, with WTI and Brent trading up 1.2% as traders continue to respond favourably to lower Saudi exports, and Halliburton (NYSE:HAL) suggesting US drilling demand has slowed. The combined impact of energy and mining developments could have the Canadian market hopping today as well.

Europe is also on the rebound today with the CAC and IBEX up over 1.0% and the DAX bouncing 0.6%. Greece is pricing its first public debt offering since 2014‎, strong demand would provide further evidence of a turnaround in the Eurozone's fortunes. The interest rate on the 2014 issue was 4.9%.

Currencies have been steady overnight with key pairs trading near round numbers including $0.8000 for CADUSD and AUDUSD, $1.2500 for USDCAD and $1.3000 for GBPUSD.

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