Tuesday, May 11, 2010

BHP Billiton (NYSE:BHP) Cliffs Natural Resources (NYSE:CLF), Rio Tinto (NYSE:RTP) Under Pressure

Mining companies are part of the drop in stock share prices today in the commodity sector, as BHP Billiton (NYSE:BHP) Cliffs Natural Resources (NYSE:CLF) are Rio Tinto (NYSE:RTP) all under pressure from the growing fears over how China's austerity measures will affect the demand for raw materials from the country.

Cliffs has really been hammered, partly because of the hold rating from analysts at Stifel Nicolaus, who said it is valued right at where it should be.

But in general, the raw materials companies have been taking a hit largely from the China story, and we'll probably see a lot of ups and downs for a while as economic news continue to roll out from the middle kingdom on the changes it is making in an attempt to battle the possibility of a bubble bursting.

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