Concerns over the ability of the European Union to rein in spending and take care of their debt crisis was increased with the German ban on speculators, which gave the impression they're unable to to handle the challenge. Consequently, Teck Resources (TSE:TCK-B) and First Quantum (TSE:FM) took a hit as the base metals sector dropped by about 4 percent earlier in the day.
Uncertainty over the impact or potential impact of inflation in China also has generated worries over how demand will be affected, and how much China will cut back on the import of raw materials.
The combination of the debt crisis and response of China to inflation has generated a new narrative for the rest of the year that not too long ago was almost sure to be a big one for those companies providing raw materials to China and other emerging markets.
Demand in the gigantic European market is also beginning to weigh on the markets, as they'll definitely struggle to focus on growth while they're now trying to survive.
No comments:
Post a Comment