Mining stocks tick higher amid JP Morgan recommendations and China move 📈

Commodity companies on European stock exchanges are doing better, and gains in China accelerated after the People's Bank of China's decision to fuel demand. In addition, JP Morgan analysts raised their recommendations for Europe's largest commodity companies.

• In an effort to stimulate the economy, the PBoC used another tool - it cut the bank reserve requirement rate by 25 bps;
• Markets reacted quite strongly to the decision, ahead of the upcoming ECB meeting. Oil and commodity concerns gained strongly, coinciding with JP Morgan's analyst coverage
• The strong gains in the mining stocks sector come after a dismal streak, when it was hampered by concerns about China's economy - it is now seeing a momentary uptick in construction after a weak summer period
• We are also seeing sizable gains in commodity companies in Poland, with shares of KGHM (KGH.PL) and JSW (JSW.PL), among others, rising

Recommendation changes from JP Morgan

• The recommendation on BHP Group (BHP.UK) was raised to GBP25.5 with a neutral rating 
• Recommendation for Anglo American (AAL.UK) raised to GBP 29 from previous 26.5 with an 'overweight' rating
• Rion Tinto (RIO.UK) was given a 'neutral' rating but the target price was raised by more than 10% to GBP 60 per share

Rio Tinto (RIO.UK) shares D1 interval. Following the ECB's decision, the stock may give back some of the gains as long as the bank decides to raise rates and hints at possible further ones as part of its fight against inflation. On the other hand, the potential maintenance of rates unchanged could unleash the bulls.

Source: xStation5