China's continuing battle against inflation has again pressured raw materials companies like Alcoa (NYSE:AA), Titanium Metals (NYSE:TIE) and AK Steel (NYSE:AKS), which have all plunged again today on news China has raised interest rates again.
While the interest rate increase today wasn't completely unexpected, it came sooner than was anticipated, generating concern inflation may be surging faster in China, which could result in even larger upside moves at a quicker pace.
Commodities companies in certain segments are concerned as to the depth of the tightening by China, as it'll have a dramatic effect on a number of them with strong exposure to the Chinese market.
AK Steel was trading at $16.46, down $0.10, or 0.60 percent, as of 1:54PM EST. Titanium metals was at $16.76, down $0.35, or 2.05 percent. Alcoa dropped to $15.18, falling $0.16, or 1.04 percent.
No comments:
Post a Comment