Rio Tinto

Tuesday, 17th July 2018 11:08 - by Rajan Dhall

Today sees the latest production numbers from mining giant Rio Tinto, it's clear to see that there has been a slump in the recent uptrend in shares and this is mainly due to weaker commodities prices and the continuous threat of an all-out trade war between China and America.

The first thing to notice about the report is the surge of Iron ore exports, the Co. produced a massive 88.5mln tonnes of the material in Q2 and it has been said that good mining conditions have helped. Some analysts believe that the like of Vale and Rio are getting rid of stock just in case prices fall due to a trade war and of course this would be prudent. 

This all seems pretty solid from the Anglo-American miner but the current geopolitical backdrop is clearly having an impact on the companies share price. The key here is how China react if they come out on the offensive then we could clearly see further weakness but this morning I believe we could see some bullishness from these production results. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.