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The S&P 500 Materials sector jumped +4.04% this week, with the Materials Select Sector SPDR Fund (XLB) also up +4.29%.
The sector was buoyed by strength in precious and industrial metals amid better-than-expected China industrial data and market sentiment that the Federal Reserve would stop raising interest rates.
Gold and silver prices made large gains this week after higher U.S. unemployment claims for November and weaker producer prices reinforced expectations that Fed interest rates would stay stable.
Front-month Comex gold (XAUUSD:CUR) ended +1.2% to reach a two-week high of $1,983.90/oz, while silver (XAGUSD:CUR) settled +1.7% to $23.892/oz, the highest closing value since September 1.
Meanwhile, stronger than expected industrial production data from China drove up prices of iron and copper. The Singapore Exchange’s benchmark December iron ore (SCO:COM) topped $130/metric ton for the first time in eight months on Wednesday China’s industrial output rose 4.6% Y/Y in October.
According to Reuters, benchmark copper (HG1:COM) on the London Metal Exchange reached as high as $8,278/ton this week, the best level since October 2.
Take a look at this week’s top gainers among basic material stocks ($2B market cap or more):
- Sigma Lithium (SGML) +36%
- Hecla Mining (HL) +21.78%
- Companhia Siderurgica Nacional (SID) +18.11%
- Scotts Miracle-Gro (SMG) +17.12%
- Alpha Metallurgical Resources (AMR) +14.68%
Here are the top losers among basic material stocks:
- CF Industries (CF) -2.36%
- Osisko gold royalties (OR) -2.30%
- Suzano (SUZ) -1.37%
- Compania de Minas Buenaventura (BVN) -1.01%
- United States Steel Corporation (X) -0.20%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).