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Basic Materials Roundup: Market Talk

10 Feb 2018 9:20 am

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

2120 GMT - Canadian stocks fell Friday following another turbulent day on equity markets as gold miners weighed heavily on the Toronto-based exchange. The S&P/TSX Composite Index was down 31.08 points, or 0.2%, to 15,034.53. The blue-chip S&P/TSX 60 Index was down 0.93 points, or 0.1%, to 889.20. Trading volumes were at 514.2M while declines outpaced advances 1,200 to 552. (david.george-cosh@wsj.com; @itsdgc)

16:07 - US stocks finish the broadly higher, after a late rally sends the blue chips up more than 300 points, but the Dow still suffers its worst week in two years. Today's trading continued the recent trend marked by volatility as the Dow industrials have now swung at least 500 points from session high to low on five consecutive trading days--something that last happened in October 2008. Treasurys are volatile as well with the 10-year yield near 2.850%. Oil prices dip below $59 a barrel on worries about a surge in production. DJIA rises 330 points to 24190, the S&P climbs 38 to 2619 and the Nasdaq gains 97 to 6874. (patrick.sheridan@wsj.com)

1801 GMT - London shares close 1.1% lower Friday after what analysts described as the worst week for stock markets since the 2008 financial crash. The FTSE 100 Index sheds 78.26 points to 7092.43 as the Dow Jones Industrial Average rides a roller-coaster, giving up early gains before heading back into negative territory. Turbulence could last into next week, analysts say. "What is clear is that no-one is keen to hold equities into the weekend," says Chris Beauchamp at spread-betting firm IG. Johnson Matthey PLC falls 4.3% as precious metal prices drop. (philip.waller@wsj.com)

1751 GMT - Investors will focus on the state of talks between Acacia Mining PLC's major shareholder Barrick Gold and the Tanzanian government when the miner reports full-year results on Tuesday Feb. 13. The pair are in negotiations regarding a concentrate export ban, tax refunds and ownership/profit sharing of mining assets. "At this point, we've assumed a conclusion is reached by the middle of 2018 that enables gold/copper concentrate exports to restart with the inventory sold down over the following 12 months," says Numis Securities. "We have also assumed a $300 million payment to resolve outstanding tax claims and the transfer of a 16% interest in the operations for nil consideration." Numis forecasts 2017 EBITDA of $293M and EPS of 27 cents per share. (philip.waller@wsj.com)

1726 GMT--The Bel-20 closes 0.9% lower at 3876.33 on Friday, as European and Asian equity markets dropped and US stocks continued on a downward path after Thursday's 1000 point-plus sell-off. Pharmaceutical research firm Galapagos NV led the benchmark's slump with a 3.1% decline, followed by a 2.7% drop in the stocks of another pharmaceutical company, UCB SA. Five companies ended the day higher, led by a 7.8% jump in the shares of Brussels-based materials-technology company Umicore and a 1.4% gain in the stock of Telenet Group Holding NV, Belgium's largest provider of cable broadband services. (emre.peker@wsj.com)

1440 GMT - One of the hottest precious-metals trades of 2017 has reversed a bit lately, as platinum has climbed back above its close relative palladium this week. Platinum is down 1.2% at $966.60 a troy ounce, while palladium is down 0.5% at $957.15 Friday after a recent downturn gave platinum the edge again. Palladium had surpassed platinum for the first time since 2001. Palladium is used to scrub emissions in gasoline engines, while platinum performs that function in diesel engines. Some analysts have said the sharp rise in palladium prices last year left the metal vulnerable to a pullback given similar supply constraints for platinum as well. The dollar rebounding from multiyear lows and interest-rate concerns have hurt precious metals broadly this week as stocks around the world wobble. (amrith.ramkumar@wsj.com; @AmrithRamkumar)

1458 GMT - Can the spreads of Metsa Board's 2.75% 2027 euro bond tighten further, given its strong performance since mid-December? Danske Bank thinks so, expecting another 10-20 basis points of tightening if S&P upgrades the Finnish paper-and-pulp company to investment grade. S&P currently rates Metsa at BB+, the highest junk rating, with a positive outlook. And according to Danske, the company's credit metrics are now "comfortably past" S&P's threshold for an investment-grade rating. (tasos.vossos@wsj.com; @tasosvos)

1404 GMT - Victrex has had a strong first quarter following favorable foreign-exchange rates and shipments for Apple's iPhones, Liberum says, and the investment bank lifts target price to 2,825 pence from 2,770 pence. A modest tailwind from the acquisition of aerospace and auto supplier Zyex also contributed to the U.K. polymer manufacturer's 41% revenue increase, Liberum says. Without these factors, the company's underlying performance has remained solid, with sales volumes rising about 10% to 11%, Liberum says. The investment bank upgrades its pretax profit forecast for the year ending Sept. 30 to GBP128 million, from GBP124.5 million. Shares are up 1.1% at 2,438 pence. (adria.calatayudvaello@dowjones.com)

1156 GMT - European shares fall as jitters about higher inflation and interest rates continue to unsettle markets around the globe, though the euro and sterling lose ground. The Stoxx Europe 600 drops 1.1%, or 4.3 points to 369.78. "The erratic moves that have taken place in the U.S. are unsettling investors here, and the sentiment in Europe could change when trading in New York resumes," says David Madden at CMC Markets. Johnson Matthey PLC is among the biggest pan-European fallers, down 4.6% as platinum and palladium prices drop. Electric car battery-part maker Umicore climbs 6% after record annual results.(philip.waller@wsj.com)

1051 GMT - London shares decline after Wall Street suffered the second-worst point drop in its history as fears over hgiher Treasury yields, inflation and future interest rate rises continued to spook investors. The FTSE 100 Index drops 0.3%, or 18 points to 7153.54 after the Dow Jones Industrial Average fell more than 1,000 points. Asian markets also had a bad session, where the China Shenzhen and Hang Seng indices both closed more than 3% off and the Nikkei was down 2.3%. Rises in heavyweight mining stocks help temper the FTSE 100's falls, with copper miner Antofagasta PLC the sector's biggest riser, up 1.4% and Anglo American up 1.5%. Johnson Matthey PLC falls 3.8%, however, as platinum and palladium prices drop. (philip.waller@wsj.com)

(END) Dow Jones Newswires

February 10, 2018 04:20 ET (09:20 GMT)

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