Tuesday, June 1, 2010

Freeport-McMoRan (NYSE:FCX) Pummeled on China Index

With the China Purchasing Managers’ Index falling from 55.7 in April to 53.9 percent in May, raw material companies like Freeport-McMoRan (NYSE:FCX) will be under pressure, as before we really get going in some significant activity we're already facing a slowdown.

Analysts had been looking for 54.5, showing the possibility that China was going to slow down is a reality, and questions as to how slow they're going to end up is in the air and concerning the markets.

This comes from the growing inflation in China, which they're fighting by raising interest rates and regulating parts of the property industry.

We'll probably see the market punish some raw material companies like Freeport was today, where they plunged by $3.56 to $66.49 a share, dropping 5.08 percent.

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