The Week In Hindsight, 10 January 2014
Alcoa provided an early indication of what may be in store for other global miners this month after reporting a near record write down on assets due to weak aluminium prices. The company also issued cautious guidance on its outlook for metals prices over the coming year.
The Alcoa revelations could be the beginning of a last clear out from the closet for metals producers ahead of what could arrive to be a year of salvation for them.
Should global confidence remain strong and Chinese growth stable, producers of some metals will likely have the chance to break out from a period of decline in both share prices and earnings.
Gold also attempted a rebound this week, supported by mixed feelings over US data. The metal further reversed previous losses by rising back toward the $1250 level.
Despite the retracement to the upside the outlook for metal remains bearish, particularly given expectations that the Federal Reserve will go ahead with its planned taper this month. As the pace of tapering increases and the global economy continues to improve, downward pressure upon gold would be expected to mount.
Both Brent and WTI Crude declined over the course of the week following a month of gains
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.