Metals, Mining Companies Gain on U.S. Stimulus Measures
2001-10-04 06:56 (New York)
Metals, Mining Companies Gain on U.S. Stimulus Measures
London, Oct. 4 (Bloomberg) -- Metals, mining and steel shares
rose after a proposed $75 billion U.S. stimulus package fueled
hopes that the world's largest economy can avoid recession,
boosting demand for commodities.
President George W. Bush said yesterday he would seek tax
cuts and spending of $60 billion to $75 billion from Congress to
counter the economic effects of last month's terrorist attacks. A
Bloomberg index of 29 European basic materials stocks slumped 10
percent between the Sept. 11 attacks and yesterday.
``The market is responding to the potential of the U.S.
stimulus package,'' said Peter Davey, an analyst at SG Securities
in London. ``The U.S. package dwarfs any spending that is being
discussed in Europe.''
Usinor SA, Europe's biggest steelmaker, rose as much as 85
cents, or 9.5 percent, to 9.88 euros, while Pechiney SA, the
world's fourth-largest aluminum producer, surged as much as 11
percent to 46.60 euros.
Top mining company BHP Billiton Plc gained as much as 12
pence, or 4.2 percent, to 299 pence in London. Anglo American Plc,
the second-biggest, jumped as much as 65 pence, or 8.1 percent, to
865 pence.
The U.S. Congress has already passed $40 billion in disaster
relief and a $15 billion aid package for airlines since the
attacks, while the Federal Reserve has cut interest rates twice to
their lowest level since the 1960s.
The Bank of England will probably reduce its benchmark
interest rate by a quarter-point to 4.5 percent today, its second
reduction in three weeks, to offset the economic slowdown,
according to analysts surveyed by Bloomberg.
The U.K.'s FTSE-100 stock index, which has fallen 20 percent
so far this year, rose as much as 114.3 points, or 2.3 percent, to
4996.10.
--Jon Hurdle in the London newsroom (44) 207 673 2095 or
jhurdle1@bloomberg.net/cm |
