Mining Stocks Propelled EWU to a 1.1% Gain
SPY Rose Due to the FOMC's Comment, Mining Sector Propelled EWU
EWU rose by 1.1%
The iShares MSCI United Kingdom (EWU) continued to rise for the third day. It rose to 1.1% on Wednesday, November 18. Investors in the United Kingdom shrugged off the panic after the terror attack. They seemed optimistic about the United Kingdom’s economy. The mining sector pushed EWU higher on the day. EWU’s top three stock positions were occupied by mining stocks.
EWU’s key stocks
On November 18, the stocks at the top of EWU were Antofagasta (ANTO), Glencore (GLEN), and Anglo American (AAL). They rose 5.8%, 5.0%, and 4.3%, respectively, on the day.
Despite weak copper prices, Antofagasta and Glencore rose on the day after Goldman Sachs (GS) upgraded Antofagasta stock from “sell” to “neutral.” The rating upgrade boosted the mining sector due to the positive outlook towards mining’s future demand. The commodity prices suffered a huge fall since August 2015. Even BHP Billiton (BHP) and Rio Tinto (RIO) stocks rose 2.3% and 3.6%, respectively, on the day.
The above graph shows the stock price performances of Antofagasta and Glencore since October 2015.
Stocks at the bottom
On November 18, the stocks at the bottom of EWU were Smiths Group (SMIN), Rolls-Royce Holdings (RR) (RYCEY), and Intercontinental Hotels Group (IHG). They yielded -3.0%, -2.2%, and -1.4%, respectively, on the day.
The aerospace and defense stock, Rolls-Royce Holdings, rose this week due to the terror attack in Paris. It fell on Wednesday, November 18 after Investec reissued a “sell” rating for the stock. JPMorgan Chase (JPM) issued an “underweight” rating for the stock. It cut down its price target from 630 to 405 pence sterling.
The tourism industry will likely be negatively impacted due to the terror attacks. As a result, Intercontinental Hotels Group fell 1.4% on November 18.
On the other hand, Brent crude rose to $44.14 per barrel in London. This led to the rise in the energy sector. As a result, stocks like BP (BP) and Ensco (ESV) rose 2.7% and 4.1%, respectively, on the day.
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