The S&P Materials sector closed this trading week in green at +3.75%, one of the top gainers for the five-day period. The Materials Select Sector SPDR (XLB) was also up +3.42%.
This week saw a host of economic data, including softer-than-expected Aug. global service PMI, Aug. ISM services PMI above consensus, and an unexpected drop in weekly jobless claims.
Prices of most industrial metals extended gains on Friday, led by a weaker dollar, optimism about top metals consumer China and persistent smelter shutdowns curbing supply.
According to Reuters, LME three-month copper (HG1:COM) price gained 2.1% to $7,971/ton Friday morning, after rising by 2.5% on Thursday. The contract saw the biggest weekly gain since the week ended July 29. Aluminum, zinc, nickel, lead and tin all registered modest growth on Friday.
Gold (XAUUSD:CUR) grew to its highest since late August on Friday, rising 0.5% to $1,716.27/oz by 12:05 p.m. ET, as expectations firmed for a interest rate hike from the US Federal Reserve.
Lumber futures (LB1:COM) registered a ~4% weekly gain, setlling at $509 per thousand board feet. The growth come despite continued headwinds in the housing market.
Take a look at this week’s top gainers among basic material stocks ($2B market cap or more):
- B2Gold (BTG) +17.11%
- Sigma Lithium (SGML) +16.69%
- Albemarle (ALB) +15.41%
- United States Steel (X) +14.12%
- Sociedad Quimica y Minera de Chile (SQM) +13.12%
Here are the top losers in the sector this week:
- Scotts Miracle-Gro (SMG) -8.82%
- Alpha Metallurgical Resources (AMR) -4.47%
- Huntsman (HUN) -3.23%
- Boise Cascade (BCC) -2.19%
- Posco Holdings (PKX) -2.19%
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).