The ASX 200 (Index: ^AXJO) (ASX: XJO) was getting back into the swing of things this week. Here are four stories you may have missed that affected businesses in the ASX 200 index:
Trade war truce
It’s been coming for some time, but Donald Trump finally managed to sign a trade war ceasefire with China. It will see tariffs reduced on some Chinese products by the US and China has committed to buying billions of dollars of various products such as agriculture and resources, China will also make it a little easier for US businesses to protect their IP.
This was seen as good news for businesses exposed to global trade such as BHP Group Ltd (ASX: BHP) and WiseTech Global Ltd (ASX: WTC) which rose on the announcement.
Rio Tinto Limited (ASX: RIO)
This week Rio Tinto announced its fourth quarter production results. Production was down 3% compared to the prior corresponding period (PCP) and down 4% compared to the third quarter of 2019. Copper production was down 9% on the PCP and aluminium was down 4% on the PCP, but bauxite was up 28%.
The total iron production for 2019 was down 3% compared to 2018. However, the averaged realised price for its iron ore was up 37% compared to 2018, so that more than made up for the slightly lower production numbers. Aluminium prices were down 14% and copper prices were down 7%.
Pilbara Minerals Ltd (ASX: PLS)
It has been a strong week for one of the ASX’s biggest lithium miners. The Pilbara Minerals share price went up 11.8% with investors thinking that the lithium price could rise after some Tesla related news.
Apparently Glencore is negotiating a long-term contract to ship cobalt to the new Tesla factory in Shanghai. More cars should mean a higher demand for lithium.
Resolute Mining Limited (ASX: RSG)
The big gold miner announced this week that it had achieved a sale of its Ravenswood Gold Mine for total proceeds of up to $300 million.
It will be taken over by EMR Capital and Golden Energy and Resources. The immediate sale price is $100 million with up to $200 million in contingencies depending on the future gold price and investment outcomes of Ravenswood.
The post 4 of the biggest news pieces from the ASX200 this week appeared first on Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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