By Samuel Indyk LONDON (Reuters) - Investors are finally seeing potential in European mining shares, as China's step-by-step economic stimulus is ...
By Samuel Indyk LONDON - Investors are finally seeing potential in European mining shares, as China's step-by-step economic stimulus is steadily laying the foundations for a recovery of theBy Samuel Indyk
The world's second-largest economy has been struggling after a brief post-COVID surge, dragged down by huge debt due to decades of infrastructure investment and a property downturn. Analysts forecast the economy will grow by just 5% this year, the slowest rate, outside of COVID years, since 1990. The STOXX basic resources index trades at over a 20% discount to the STOXX 600. Miners trade at a 12-month forward price-to-earnings ratio of 9.8, compared to 12.3 for the market, according to LSEG Datastream.
"Obviously, the 800-pound gorilla from a primary metal demand perspective is China," Peter Mallin-Jones, mining analyst at UK investment bank Peel Hunt, said.
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