Non-ferrous Metal Stocks Fall as Dollar Hits 100 Amid Economic, Geopolitical Strains
Non-ferrous metal stocks fell sharply in Hong Kong afternoon trading, market data showed. The US dollar climbed back above the 100 mark amid rising inflation and geopolitical tensions.
Zhitong Finance APP reported widening declines across the sector. Key movers included the following.
- Lingbao Gold (03330) fell 10.47% to HKD 24.62.
- Zijin Gold International (02259) dropped 9.02% to HKD 167.4.
- China Nonferrous Metals Mining (01258) slid 8.24% to HKD 11.25.
- Aluminum Corporation of China (02600) decreased 6.39% to HKD 11.57.
- Luoyang Molybdenum (03993) declined 5.38% to HKD 17.6.
Market drivers
A strike hit energy infrastructure in the Middle East this week. The attack pushed oil prices higher and added supply concerns.
February PPI far exceeded market expectations. Inflationary pressure rose and the Federal Reserve signalled a hawkish stance.
Those signals reduced hopes for multiple rate cuts this year. The stronger dollar followed, as it returned above the 100 mark.
Analyst perspectives
Huatai Futures warned that rising oil costs have intensified worries about a possible recession. The firm flagged the impact on broader market confidence.
Shenwan Hongyuan said escalating Middle East tensions and higher energy bills raised stagflation concerns. They highlighted greater asset volatility and sector pressure.
Analysts also pointed to long-term deglobalization trends reshaping demand for metals. They argued the logic for precious metals, commodities, and strategic minor metals has entered a new paradigm.
Despite today’s sell-off, the non-ferrous metal sector is expected to remain on an upward path long term. Short-term fluctuations may offer investors a window for annual allocation.
Filmogaz.com compiled this report using Zhitong Finance APP data and analyst commentary. Market participants will watch inflation, oil, and currency moves closely.
