Tuesday, September 14, 2010

Teck Resources (NYSE:TCK) Freeport (NYSE:FCX), Bucyrus (Nasdaq:BUCY) Up on China Production

Teck Resources (NYSE:TCK), Bucyrus International, Inc. (Nasdaq:BUCY) and Freeport-McMoRan Copper & Gold,(NYSE:FCX) all made nice upward moves Monday as China's production increased more than expected,

Industrial production grew 13.9 percent in August, beating average estimates of 13 percent from Bloomberg analysts.

China has been interesting because they seem to be sending different signals as time goes on, with a signal they're going to slow hammering the markets, and data showing growth, of course, doing the opposite.

There is no doubt China has been cutting back in urban infrastructure and property, but they've said they're looking at now expanding projects to rural areas, which they may have possibly already started to do.

Every time the underlying weakness of the global economy is exposed, data will be released which seems to contradict, or at minimum, confuse the situation.

It's dubious as to the growth in industrial production in China, but even if it's true, it does nothing to change the underlying weak fundamentals that haven't changed in any way.

Every time an alleged positive report or number comes out, the mainstream media pounces on it in order to give the appearance of a recovering economy in hopes of boosting the chances of the Democrats in the November elections in the U.S.

So we'll see this cat and mouse game go on until the elections, and whatever the outcome, the truth about the real weakness of the economy will continue to reveal itself.

For diverse mining companies like Teck, Freeport and Bucyrus, they'll continue to run the financial and economic data roller coaster until then.

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