European mining and luxury stock prices tumble as global China rally fades
The European mining and luxury stocks fell on Tuesday, as the stimulus-backed frenzy to buy Chinese-exposed shares faded outside of mainland China. This was after officials failed in their attempts to boost the world's second largest economy. economy. The STOXX Miners Index fell 4.5% when it opened and, if this early drop is maintained, would be the biggest daily decline since March 2023. The European luxury brands fell by 2.5%. This was also a result of China's announcement that it would take anti-dumping steps on imports of brandy from the European Union.
Oil Spill Leaves Commodities Spinning
Oil drops to near 6-month low before rebounding on OPEC cut talk. A slump in oil prices to the lowest in almost six months rattled markets on Friday, prompting a rally in safe-haven bonds, the yen and gold and taking the shine off a record-breaking week for world stocks. Bourses flinched in both Asia and Europe and Wall Street also looked set for a subdued start as investors, who had been expecting to spend the day mostly looking ahead to U.S. jobs data and Sunday's French elections, were caught off guard. Traders had had to duck for cover overnight as both Brent and U.S. crude fell more than 3 percent amid record trading volumes on mounting concerns about global oversupply.
Chile's AES Gener Raises Cost of Alto Maipo Power Project
Chilean energy firm AES Gener said Wednesday that its Alto Maipo hydroelectric project has ran into "certain construction difficulties" and as a result the budgeted cost would rise by between 10 and 20 percent. Alto Maipo, initially a $2.05 billion project located just outside capital Santiago, is 60 percent owned by AES Gener, with the remainder held by London-listed copper miner Antofagasta . AEG Gener shares were down around 6 percent on Wednesday morning. (Reporting by Rosalba O'Brien)
Chile Government Backs Controversial Alto Maipo Dam Project
The Chilean government gave strong backing for the first time on Wednesday to a controversial dam project under construction in a valley near Santiago, which angry local protesters have said will hurt their water supply. The-531 megawatt Alto Maipo hydroelectric project, a joint venture between local energy firm AES Gener and London-listed Antofagasta Minerals, has faced strong opposition from environmentalists and local communities. But Finance Minister Alberto Arenas told a local business forum that the project had complied with all rules and received its environmental permits.
Growth Concerns Push Britain's FTSE to One-Year Low
Britain's top share index slipped for a fourth straight session to a one-year low on Friday, with concerns over the outlook for global growth prompting investors to trim exposure to cyclical stocks. Mining and energy sectors took the most points off the FTSE 100 index following a sharp decline in commodity prices, while travel and leisure shares were hit by worries about the spread of Ebola. The UK mining index fell 3 percent and the oil and gas index was down 2 percent, tracking falls of over one percent in major industrial metals and with crude oil prices hovering near a four-year low. Miners Rio Tinto, BHP Billiton Tullow Oil and Antofagasta fell between 3 and 3.9 percent.
Chile Copper Mine Workers Plan One-day Strike
Contract workers at Chilean copper mines are planning a one-day strike next month, demanding changes to labor laws, a union head said on Tuesday. The stoppage on Sept. 4 is being held by the Confederation of Copper Workers (CTC). Union members are contractors, many of whom supply services such as catering to mines, meaning that production in the world's top copper producer is unlikely to be seriously affected. CTC president Manuel Ahumada said that the strike is aimed at putting pressure on the center-left government of Michelle Bachelet to move forward with promised reforms on strengthening unions and the right to strike.
