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Copper Industry April Update (Part 10 of 10) (Continued from Part 9) European economic data
Previously in this series, we discussed Chinese indicators, the US economy, and how each of these variables affects copper. In this part, we’ll analyze the latest European economic data.
Investors in Vale (VALE), Stillwater Mining (SWC), and BHP Billiton (BHP) should keep an eye on the European markets. Europe (VGK) accounts for almost one-fifth of global copper consumption. The iShares MSCI EAFE ETF (EFA) seeks to invest in developed markets equities excluding North America. It has invested in several major European companies.
Vehicle registrations
March vehicle registration in the EU (European Union) increased by 10.3% on a year-over-year basis, as you can see in the chart above. Apparently this is the highest growth rate in the last year.
The automobile sector is a major consumer of copper products. Higher vehicle sales in Europe are positive for the copper industry.
Manufacturing PMI
PMI figures are released on a monthly basis by Markit. Readings above 50 generally indicate economic expansion, while a reading below 50 indicates a contraction. European PMI was 52.2 in March, the highest it’s been since May last year. Manufacturing PMI in Europe has held above 50 for several months. A PMI above 50 augurs well for future economic growth in Europe.
For more on the latest developments in Europe, read How Europe’s QE Could Be a Stimulus for US-based Investors.
The latest economic data point to a recovery in the European economy. However, there are still several sectors, such as housing, where demand is weak. The EU construction confidence index has been negative for several months now. The contagion effect of the Greek situation is another potential risk for the Eurozone.
You can learn more about the copper industry by visiting our Copper page.
Browse this series on Market Realist:
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Stillwater Mining Co
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PRODUCER |
CODE : SWC |
ISIN : US86074Q1022 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Stillwater Mining is a copper and nickel producing company based in United states of america. Stillwater Mining produces copper, nickel, palladium, pgm and platinum in USA, and holds various exploration projects in Canada. Its main assets in production are EAST BOULDER MINE, STILLWATER MINE and EAST BOULDER in USA and its main exploration property is SIM LAKE in Canada. Stillwater Mining is listed in Germany and in United States of America. Its market capitalisation is US$ 2.2 billions as of today (€ 2.0 billions). Its stock quote reached its lowest recent point on November 21, 2008 at US$ 1.76, and its highest recent level on May 03, 2017 at US$ 18.00. Stillwater Mining has 121 080 187 shares outstanding. |