Morning Market Breakdown, February 27: Commodities Take a Tumble

Resource Investing News

Though Monday brought strong numbers across multiple markets, the commodities sector took a heavy hit on Tuesday morning.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) had a successful Monday (February 26), closing at 15,714.66, a 76.21-point jump. Tuesday morning (February 27) opened on a quieter note at 15,703.69.2

The TSX’s strength on Monday was influenced by boosts in industrial and energy shares, as companies like Enerplus (TSX:ERF) gained 1.7 percent to $14.73, and Suncor Energy (TSX:SU) gained 1.2 percent to $44.11.

Meanwhile, West Fraser Timber (TSX:WFT) rose 1.3 percent to $93.27, while Bombardier (TSX:BBD.B) picked up 2.1 percent to $4.07.

Monday didn’t see much movement with the S&P/TSX Venture Composite Index (INDEXTSI:JX), as it gained 0.78 points to end the day at 826.87. The index had a bit more spring in its step on Tuesday morning, however, as it opened at 830.57.

The Dow Jones Industrial Average (INDEXDJX:.DJI) continued its hot streak on Monday as it boomed with a 399.28-point boost, closing at 25,709.27. Tuesday morning kept the Dow on the rise, opening at 25,735.78 points.

The S&P 500 (INDEXSP:.INX) picked up 32.3 points by the end of day Monday, closing at 2,779.6. Tuesday morning saw a minor boost at open with a total of 2,780.45 points.

Daily metals

Gold prices closed in the green on Monday at US$1,335.20 an ounce. Tuesday morning was a harsh awakening to the market, as gold was down at US$1,326.10 as of 10:00 a.m. EST. Silver may have had a good Monday as it closed at US$16.64 an ounce, but the white metal had a rocky Tuesday morning when it fell to US$16.52 an ounce as of 10:00 a.m. EST.

Copper took a small tumble on Monday, closing at US$3.16 a pound. It continued to slide Tuesday morning, sitting at US$3.15 a pound.

Major miner news

  • Fresnillo (LSE:FRES)Silver miner Fresnillo released its financial results for 2017 on Tuesday, commenting that its adjusted revenue came in at US$2,233.2 million, up 9.2 percent from the previous year. The increase was “primarily due to record silver volumes, an increase in zinc volumes sold and higher base metal prices.”

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

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