Arcelor Mittal (NYSE:MT) and Peabody (NYSE:BTU) Downgraded by Deutsche Bank (NYSE:DB)

Deutsche Bank (NYSE:DB) downgraded Arcelor Mittal (NYSE:MT) and Peabody Energy Corp. (NYSE:BTU), taking them both down from "Buy" to "Hold."

Deutsche said, "Since our last quarterly updates, the coal/steel sectors have outperformed the market. The performance can be attributed to improved economic sentiment (China, US), commodity price performance, USD weakness, etc. As a result, risk-reward is largely balanced. Also, through this report we trim estimates (from slightly to significantly), and with share prices now nearing some of our PTs, we have trimmed some ratings."

Although economic sentiment isn't convincing, commodity prices and the weakness of the U.S. dollar will continue to be a major factor in the performance of companies producing raw materials, and that could be a strong impetus for companies like Arcelor Mittal and Peabody Energy.

The market agreed Tuesday, as it shrugged off the downgrades and pushed the price of shares in both companies up strongly.

Arcelor Mittal closed at $33.24, gaining $1.12, or 3.49 percent, while Peabody Energy ended the session at $50.46, increasing by $1.01, or 2.04 percent.