News

January 10, 2009

That Was The Week That Was … In Australia

By Our Man in Oz

Minews. Good morning Australia. It looks as if your market is off to a solid start this year.

Oz. “Encouraging” would be the correct description. The overall trend has been positive since Christmas, and there have been a handful of interesting upward moves in most sectors. Nickel stocks have led the way, perhaps playing their traditional role as “first mover” in a commodity-cycle recovery. Copper stocks were also firmer, along with iron ore, while some of the companies exploring for specialty minerals did very well. Coal and gold were the weakest.

Minews. Let’s start with the good news, because it seems that your part of the world is marching to a different tune to that being heard in London.

Oz. So I observed when passing through your part of the world last week. Business down this way is certainly tougher than a year ago, but not nearly as tough as what you’re experiencing. What’s driving interest in the Australian market is China, or more particularly, a belief that Chinese demand for raw materials will start to recover soon. Since...