Popular Stories

Reddit traders send mining stocks higher as silver futures jump to eight-year high

European-listed miners jumped on Monday, as U.S. retail interest pushed futures on silver up to an eight-year high.

Fresnillo FRES, +16.55%, Mexico’s second-largest silver miner, jumped 17% in London. Anglo-Russian gold and silver miner Polymetal POLY, +7.56% rose 8%, and Polish silver and copper miner KGHM Polska Miedz KGH, +1.70% added 2%.

Silver futures SI00, +11.32% rose as much as 13%.

The gains in silver illustrate the wild moves in certain stocks and assets over the last week, initially fueled by a short squeeze on the U.S. videogames retailer GameStop GME, +67.87% fuelled on the Reddit message board that has spread to other assets.

“Influencing the price of silver will not be as easy as a single small or medium sized single equity. Silver’s market cap is in the range of $1.4 trillion to $1.6 trillion as opposed to GameStop’s $1.5 billion before becoming the target of retail investors, and a large proportion of the market is off-exchange. However, it will be interesting to see the small players’ power and how much further they can push prices,” said Hussein Sayed, chief market strategist at FXTM.

After a rough week in which it lost 3.1%, the Stoxx Europe 600 SXXP, +1.47% rose 1.1% on Monday.

U.S. stock futures ES00, +1.07% also were higher.

Of stocks on the move, JD Sports Fashion JD, +6.69% rose 6% after agreeing to buy DTLR Villa, a Baltimore-based athletic footwear and apparel retailer with 247 stores, for $495 million. In the 52 weeks ended Feb. 1, DTLR had earnings before interest, tax, depreciation and amortization of $45.6 million.

Klépierre LI, -4.78% declined, as the shopping-mall operator said 88% of its French malls are closed, as are nonessential shops in Italy, Denmark, Germany, the Netherlands, Portugal, Czech Republic, Barcelona and Oviedo in Spain, and Oslo in Norway.

View Article Origin Here

Related Articles

Back to top button