#MarketSense CHART OF THE DAY: Mining Sector

July 12, 2018 4:44 pm Published by Leave your thoughts

The chart of the day, we’re going to zoom in on the mining sector, that has been under pressure. You’ll remember that Implants announced recently it may have to cut more jobs due to the economic conditions. Well, mining production fell in South Africa in May according to figures out today. It fell meaning the mining sector contracted by 2.6 per cent in May, after falling by 4.4 per cent in April and a shocking fall of more than 8 percent a month before that. That’s three months of contraction – although the figure was better than expected. Manufacturing data rose and maybe that’s helping the Rand today. It has gained a full 2 percent against the dollar as the concerns around the global trade war ease again. In a moment we’ll be speaking to Mike Schussler about putting this data in context. And the context is that there have been signs of late that there could be a recession in South Africa. Remember the economy contracted in the first quarter.
Could there be another contraction or is the fact that today’s data is better than the expected meaning we’re out of the woods?

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This post was written by CTLive