Alcoa and Sovereign Debt in Europe
Fundamentals aren't driving commodity-related stocks at this time, as the sovereign debt fiasco in Europe is making the U.S. dollar look good, in spite of its own problems. Alcoa (NYSE:AA), like other commodity companies and commodity stocks are having downward pressure put on their share prices as a consequence.
The euro is under such pressure that people have already forgotten the problems with the U.S. dollar, as at this time they're insignificant in comparison to the euro.
Much of this was precipitated yesterday by Portugal's debt being downgraded by Fitch Rating, which caused havoc in the commodities market.
The U.S. dollar reached a 10-month high against the euro on the growing concerns over sovereign debt in Europe.
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