In case you missed it, here is this week’s big news roundup in the resource market.
In the US, the Federal Reserve has hinted that it may cut interest rates which have buoyed US stocks and treasuries, leading the S&P 500, the Dow Jones Industrial Average and Nasdaq to new highs this week. The rate cuts in the US have helped boost stock valuations by stimulating corporate earnings and capital spending as borrowing costs fall, leading to gains on the S&P/TSX Composite index (INDEXTSI:OSPTX) this week. However, the rate cuts also signal that there is an emerging economic weakness, which is harmful to equities. This was evident in the dramatic fall of the S&P/TSX Composite index on Friday.
The materials sector fell the most at 2.7 percent, followed by gold prices, which fell by almost two percent. Also affecting the index was the announcement that Canada shed 2,000 jobs in June. As for the S&P/TSX Venture Composite Index (INDEXTSI:JX), it opened at 587.22 points on Friday and was dragged lower as the gold, materials and information technology sectors experienced losses.
In case you missed it, here is this week’s big news roundup in the resource market:
- Deer Horn Becomes First Junior Exploration Company to Gain Membership with the Initiative for Responsible Mining Assurance
- Tr’ondek Hwech’in and Yukon Government Support Received for the Re-start of Golden Predator’s Brewery Creek Gold Mine
- Parallel Mining Conducting Due Diligence on Ethiopian Projects
- 21C Metals Files NI 43-101 Initial Resource Report for the East Bull Palladium Project