The reason a stock is moving isn't always instantly visible.
ArcelorMittal SA (NYSE: MT) was trading notably higher during the Monday session on what seemed to be no news, so Benzinga reached out to an analyst to see if they knew why.
ArcelorMittal's Stock Move
The price action in the Vanguard FTSE Europe ETF (NYSE: VGK) showed that European equities were indeed trading higher.
ArcelorMittal also closed an acquisition of a 60% joint venture stake in Essar India, which the company views as a growth engine for the future, the analyst said.
"The company had already put a lot of equity capital toward a successful closing of the deal, so investors may be relieved that capital was justified. It was a long closing," Gibbs said.
The stock is also extremely correlated to European hot-rolled coil prices, which were rising off lows, he said.
Running Down Price Action
It's important to note that while stocks are listed on U.S. exchanges, volatility and price action can come from anywhere in the world. ArcelorMittal is sensitive to European markets.
If a stock you're researching has abnormal volume and price action with seemingly no company-specific news, look on a macro level. ArcelorMittal is a steel production company — a sector intertwined with and impacted by the world economy.
Public domain photo via Wikimedia.
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