Miners surge as silver futures jump to eight-year high on retail interest

0
23
Silver futures spike, fueled by online trading


European-listed miners jumped on Monday, as U.S. retail interest pushed futures on silver up by to an eight-year high.

Fresnillo
FRES,
+20.04%
,
Mexico’s second-largest silver miner, jumped 17% in London. Anglo-Russian gold and silver miner Polymetal
POLY,
+6.80%

rose 7%, and Polish silver and copper miner KGHM Polska Miedz
KGH,
+1.70%

also rose 7%.

Silver futures
SI00,
+12.06%

rose by 12%.

The gains in silver illustrate the wild moves in certain stocks and assets over the last week, initially fueled by a short squeeze on the U.S. videogames retailer GameStop
GME,
+67.87%

that has spread to other assets.

“Influencing the price of silver will not be as easy as a single small or medium sized single equity. Silver’s market cap is in the range of $1.4 trillion to $1.6 trillion as opposed to GameStop’s $1.5 billion before becoming the target of retail investors, and a large proportion of the market is off-exchange. However, it will be interesting to see the small players’ power and how much further they can push prices,” said Hussein Sayed, chief market strategist at FXTM.

After a rough week in which it lost 3.1%, the Stoxx Europe 600
SXXP,
+1.11%

rose 1.1% on Monday.

U.S. stock futures
ES00,
+0.93%

also were higher.

Of stocks on the move, JD Sports Fashion
JD,
+6.67%

rose 6% after agreeing to buy DTLR Villa, a Baltimore-based athletic footwear and apparel retailer with 247 stores, for $495 million. In the 52 weeks ended Feb. 1, DTLR had earnings before interest, tax, depreciation and amortization of $45.6 million.

Klépierre
LI,
-6.01%

declined, as the shopping-mall operator said 88% of its French malls are closed, as are nonessential shops in Italy, Denmark, Germany, the Netherlands, Portugal, Czech Republic, Barcelona and Oviedo in Spain, and Oslo in Norway.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here