Anglo American jumps another 10% as its revival continues

Discussion in 'Market News' started by Lily, Feb 5, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Mining group boosted by weaker dollar and short sellers covering positions

    After the long-running slump in commodity prices and mining companies, investors are seeing a revival of interest in the sector.

    Anglo American has jumped 10.5% or 34p to 3623p, after a near 20% surge on Thursday.

    Stories that Anglo American might fall out of the FTSE 100 index may have encouraged hedge funds and other investors to short the stock.

    An unexpected and sudden weakening in the US dollar on expectations for ongoing low interest rates helped oil prices, gold and other metals to jump. The recovery in gold and other commodity prices yesterday prompted a rally causing a likely rapid unwinding of short position and a rush to contain losses by short sellers.

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