JPM cuts mining and metal companies amid Middle East conflict

Voestalpine AG

09/03/2026 10:43

March 9 (Reuters) - ** J.P. Morgan downgrades mining & metal companies due to the projected impact of the war in the Middle East

** The broker says the conflict poses similar risks to those brought about by Russia's invasion of Ukraine in 2022, which led to a contraction in global growth, a tightening of monetary policy and a 40% fall in European Metals & Mining companies' shares

** JPM downgrades copper suppliers First Quantum FM.TO, Antofagasta ANTO.L, Anglo American AAL.L and Lundin Mining LUN.TO, citing a rise in inventory levels around the world

** The analyst cuts European steel companies ArcelorMittalMT.LU and Voestalpine VOES.VI, citing higher costs of steel production, demand effects and potential rate increases by the ECB

** The broker prefers gold miners Fresnillo FRES.L and Anglogold AU.N due to gold's safe haven status and producers of aluminium like Hydro NHY.OL, with aluminium being the only metal directly supplied from the Middle East

** The European basic resources index .SXPP falls 3.5% with ArcelorMittal and Voestalpine dropping 6-9%, Antofagasta and Anglo American slumping around 6%

** The pan-European STOXX 600 index .STOXX slips 1.5% amid soaring oil prices, growing geopolitical uncertainty

COMPANY
NEW RATING
OLD RATING
First Quantum
underweight
overweight
Antofagasta
neutral
overweight
Lundin Mining
underweight
neutral
ArcelorMittal
underweight
overweight
Voestalpine
underweight
overweight
Fresnillo
overweight
overweight
Anglogold
overweight
overweight
Norsk Hydro
overweight
overweight
Anglo American
underweight
neutral
Rio Tinto
neutral
overweight

 (Reporting by Simon Ferdinand Eibach; Editing by Ronojoy Mazumdar)

 ((Simonferdinand.eibach@thomsonreuters.com))