Here’s Why Rare Earth Stocks Are Spiking Now
News that China’s GDP grew by .01% more than expectations, at a rate of 9.5% in the second quarter, is fueling a strong day for rare earth stocks. Also contributing was news that the nation’s domestic industrial output rose by 15% in June, signaling persistent strong consumer demand in the eastern emerging market.
Inflation continues to be a hot button issue in China’s (NYSE:FXI) fiscal policy plans, though now some economists think that it will ease in the second half of the year. As prices for many popular food staples have been climbing, many expect the central bank will raise interest rates again and most expect further increases in bank reserve ratios.
Here’s a look at how top rare earth stocks are performing in trades today:
Molycorp (NYSE:MCP) up 2.34%, Avalon Rare Metals (AMEX:AVL) up 2.10%, Thompson Creek Metals (NYSE:TC) up 1.52%, 3M Company (NYSE:MMM) up .37%, General Moly Inc. (AMEX:GMO), up 1.67%, PolyMet Mining corp. (AMEX:PLM) up 6.70%, and Freeport-McMoRan Copper & Gold Inc.(NYSE:FCX) up 1.97%.