Reuters Insider - Inside The News: Rare Earth Shares Jump On China Export Cuts

China Rare Earth Holdings

13/06/2016 11:03

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Shares in rare earth miners surged after China    
                     slashed export quotas for the first half of 2011. 
                     The dollar rebounds, while the yen approaches a   
                     key level.                                        
 
 
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Transcript (May be auto-generated)

                 Inside the News at midday Hong Kong this Wednesday, December 29. The US Dollar 
recovers, thanks to a spike in 10-year Treasury yields. That comes after the 
Dollar Index tumbled in volatile trading overnight. Traders say very illiquid 
conditions are behind the erratic moves. The Japanese Yen hits a six-week high 
at 81.81 against the US Dollar before pulling back. The recent gains are 
sparking talks of intervention. But IFR's Head of FX for Asia John Noonan says 
Dollar-Yen's downtrend is intact. The downtrend in Dollar-Yen that started on 
December 15, when it couldn't get above 

the 84.50, it accelerated yesterday and it broke down to important Fibo support 
around 81.85. If we see a break of that level, we could put the all-time low at 
79.75 into focus and that will certainly draw a lot of attention of Japanese 
authorities. For the Dollar-Yen momentum to, downward momentum to cease, you'd 
have to see a break back above the top of the cloud at 83.07. Well the Aussie 
remains well bid, thanks to a rally in commodities after the 

currency hit a seven-week high overnight. Traders are looking at near-term 
resistance of 1.0182, which marks the 28-year high set in November. But some of 
the markets suggest we could soon see a double top in the Aussie. Now in the 
commodities space, rare earth once again in the spotlight after China slashes 
export quotas by an effective 35% for the first half of 2011. The Commerce 
Ministry said foreign companies would also have to abide by those new quotas. 
Shares in rare earth producers are climbing on that news. Here's Sydney's Lynas 
up more than 10%; Hong Kong-listed China Rare Earth Holdings jumping by about 
the same amount in Hong 

Kong trade. Now oil once again creeping up to its two-year high reached on 
Monday, thanks to the weaker Dollar. Trading volumes though about one-third of 
the 30-day average. Crude rose to $91.49 a barrel. That's while copper also 
marked its second record high in as many days, jumping 1% to reach 433.50 
overnight. And keep an eye on coal shares today as several Australian ports face
shutdowns or disruptions as heavy rains batter key producer Queensland state. 
Anglo-American says its coal production has been affected, though it has yet to 
reveal specific details. Finally on the corporate front, China says it's 
considering tougher capital rules for its biggest banks, that's according to the
China Securities Journal, quoting Liu Mingkang, Chairman of the CBRC. Now the 
report says the next steps could include simplifying business structures at 
these financial firms. Well stay with us for more analysis of China's rare earth
quota cuts rather, with sector expert Jack Lifton. That's at 15 minutes time 
right here on Insider. I'm Jon Gordon, this is Reuters