Aluminum stocks rose as giant Russian producer United Company Rusal warned on Monday that Trump administration sanctions could land the company in technical default of debt obligations.
XSanctions implemented Friday prevent U.S. entities from doing business with Rusal. Rusal is controlled by Russian oligarch Oleg Deripaska, a close friend of President Vladimir Putin. Rusal shares sank on Friday in Moscow trading, then collapsed on Monday, losing about half their value.
Aluminum Stocks Rally
Shares of Century Aluminum (CENX) and Alcoa (AA) surged on expectations they would benefit from higher aluminum prices with Rusal production removed from the marketplace. Aluminum prices rose more than 4% over the past 24 hours.
Century Aluminum raced ahead 12.1%, while Alcoa climbed 5.35% on the stock market today.
U.K.-domiciled Rio Tinto (RIO), also seen as a potential winner from the Rusal sanctions, rose 0.75%.
The move upward put Alcoa about 11% off a multiyear high. Century Aluminum shares are still more than 20% below their recent peak, having soared on Trump tariffs on its capacity expansion, only to dive when President Trump exempted much of the world.
Trump cited Century Aluminum's $100 million investment to expand capacity at its Hawesville, Ky., smelter as vindication for the tariffs before granting wide exemptions.
The Treasury Department is implementing sanctions authorized by Congress last year to punish Russia for interfering in the 2016 election.
YOU MIGHT BE INTERESTED IN:
Trump Tariffs: Why $100 Billion China Trade War Threat May Be Good News
How To Handle The Stock Market Correction With Swing Trading Strategy
Q1 Earnings: Netflix, 3 Top IPOs Join Stocks Expecting 50%-Plus Growth
Looking For The Best Stocks To Buy And Watch? Start With This 3-Step Routine
See Which Stocks Were Just Added To — And Removed From — IBD Stock Lists
Stock Market Today: Track Market Trends And The Best Stocks To Watch
The post Aluminum Stocks Jump As Trump Sanctions Target Putin Pal appeared first on Investor's Business Daily.
http://feedproxy.google.com/~r/BusinessRss/~3/-ydEltpcS1M/
No comments:
Post a Comment