From Barron's Focus on Funds:
No corner of the market is feeling the impact of China’s currency devaluation more than metals and mining stocks.
China’s move to reduce the value of the yuan versus the dollar is likely to bolster exports, since it’s products become cheaper to foreign buyers. That could mean more metal supplies into an already crowded marketplace. On the flip side, companies that ship materials to China might find less demand from the world’s second-largest economy as their products become more expensive for Chinese buyers. China is, by far, the world’s leading consumer of copper, lead, zinc, tin and aluminum.
Copper miner Freeport-McMoRan (FCX) sank 13%, while aluminum producer Alcoa (AA) was hit for 6.4%. The SPDR S&P Metals and Mining exchange-traded fund (XME) fell 3.4% in volume that was on pace to double its recent average.
Glencore (UK: GLEN), the London-listed commodities firm, plunged 7.3%; iron ore giants BHP Billiton of Australia (AU: BHP) and Rio Tinto (UK: RIO) were hit for 5% and 3.1%, respectively....MORE
