Mining stocks fall as copper hits three-month low
Copper prices have dropped to their lowest point in three months, driven by concerns over slowing consumer demand and economic growth in China.
Official data released recently showed the Chinese economy expanding at a slower annual rate of 4.7% in the second quarter, which is significantly lower than the expected 5.1%.
Additionally, the central bank's decision to cut interest rates yesterday did not alleviate these concerns.
Fears over what this downtraning could mean for demand for commodities and metals have now impacted copper prices, with the three-month contract on the London Metal Exchange falling 1% to $9,123 per metric ton as of this morning.
This decline has also negatively affected mining companies, causing a plunge in their stocks at the bottom of the FTSE 100 index. Glencore saw its shares drop by 2.2%, Anglo American decreased by 2.1%, Rio Tinto fell by 1.4%, and Antofagasta witnessed a decrease of 1.3%.
In terms of share prices, Alphabet's offer for Wiz may have been called off, but experts believe that the increase in cyber attacks and growing demand for cloud computing will lead to more mergers and acquisitions within the cybersecurity sector. Matt Britzman from Hargreaves Lansdown commented on this shift, stating:
Alphabet's unexpected move to accelerate its presence in the cybersecurity field has abruptly ended. Instead, Wiz is now focused on expanding revenue and considering an initial public offering (IPO). This decision comes as a setback, especially after securing funding worth $120m back in May.
Alphabet currently trails behind Microsoft and Amazon in providing a comprehensive suite of cybersecurity products. With the increasing demand for cloud computing services and rising risks associated with cyber attacks, having robust cyber products will become an attractive proposition for enterprises looking to secure their data.
Industry analysts anticipate that this trend could lead to more mergers and acquisitions in the cybersecurity space.
Tesla's CEO Elon Musk has announced plans to produce and eventually sell "useful humanoid robots" starting next year, according to his social media account X. Although he mentioned that Tesla may mass-produce these robots at a price below $20,000 each, it remains uncertain if they will meet the previously stated deadline of introducing self-driving taxis by now.
Meanwhile, Alphabet's unsuccessful bid to acquire Wiz has been reported as the largest deal in Alphabet's history and also holds the title for the most significant takeover of a venture capital-backed company. Despite no official statement from either party regarding why they declined the offer, internal disagreements have emerged. Some board members expressed concerns about regulatory approval, while others opposed the merger entirely.
As an alternative move, Wiz is planning to pursue a public offering of its shares in the coming months, as reported by news sources.
The financial agenda for today includes:
- 3pm BST: Eurozone consumer confidence (preliminary) report for July
- 3pm BST: US existing home sales figures for June
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