S&P 500 (SP500) on Friday posted another week heavy loss, decrease -3.29% for a five-day session. Materials are what lose the most, reduce -4.99%and the Material Selection Sector SPDR ETF (XLB) -4.89%.
Gold sinks the lowest level in six years and Silver fell to its lowest level in more than two years for the week, amid a stronger dollar and rising global bond yields. Comex Gold December (XAUUSD: CUR) hit a low of $1,705.60/oz and December silver (XAGUSD: CUR) fell to $17.61/oz after falling 2.4% in the previous session.
Aluminum prices too fell to a 16-month low on Thursday while other base metals fell on the London Metal Exchange. According to Reuters, the benchmark aluminum futures contract (LMAHDS03: COM) on the recently traded LME -2.3% to $2,305/ton, and tin LME -6.8% to a 19-month low of $21,240/ton after falling as much as 9%; zinc, copper, nickel and lead were also lower.
After the recent recovery, copper strong reverse this week, with a Comex pre-month copay (HG1: COM) closed on Thursday -2.9% at $3,4145/lb, the lowest settlement value since July 26. Prices fell on concerns that Europe’s energy crisis, tighter monetary policy by the Federal Reserve and China’s harsh COVID-19 lockdown will affect metal demand and global economic growth.
Take a look at this week’s top gainers among basic materials stocks ($2 billion market cap or more):
- Turquoise Hill Resources (TRQ) +8.37%; Stocks soar after the company after it reach an agreement for Rio Tinto (RIO) to buy the remaining shares in the miner it doesn’t already own.
- Axalta paint system (ACTTA) +0.69%
- Posco (PKX) -0.40%
- Corteva (CTVA) -0.58%
- GCP application technology (GCP) -0.70%
The biggest losers for the week were:
- Scotts Miracle-Gro (SMG) -14.52%
- BHP Group (BHP) -13.76%
- US Steel (X) -13.07%
- Companhia Siderurgica Nacional (SID) -11.74%
- Alcoa (AA) -11.73%
Other documentary ETFs to watch: iShares Global Timber & Clinical ETF (WOOD), Sector Select Materials SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Coin Mining Company Global X ETF (COPX).