Thursday, May 13, 2010

Citigroup (NYSE:C) Likes Xstrata (LON:XTA), Metal Industry

Citigroup (NYSE:C) recommended Xstrata (LON:XTA) today, and the share price soared by by $39 to $1,096.50, a 3.69 percent gain.

Xstrata also was given a price target of $1,600 by Citi.

Other mining stocks responded well to the news, with BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP), gaining, although Rio pulled back at the end of the day, depending on what stock exchange they were listed on. On the NYSE, Rio dropped slightly.

Even so, the metals industry should continue doing well, although the shadow of inflation concerns in China and Europe, along with the sovereign debt crisis weighs on the markets as unsurety concerning demand is now an increasing part of the equation.

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