Reddit traders send mining stocks higher as silver futures jump to eight-year high
European-listed miners jumped on Monday, as U.S. retail interest pushed futures on silver up to an eight-year high.
Mexico’s second-largest silver miner, jumped 17% in London. Anglo-Russian gold and silver miner Polymetal
rose 8%, and Polish silver and copper miner KGHM Polska Miedz
rose as much as 13%.
The gains in silver illustrate the wild moves in certain stocks and assets over the last week, initially fueled by a short squeeze on the U.S. videogames retailer GameStop
fuelled on the Reddit message board that has spread to other assets.
“Influencing the price of silver will not be as easy as a single small or medium sized single equity. Silver’s market cap is in the range of $1.4 trillion to $1.6 trillion as opposed to GameStop’s $1.5 billion before becoming the target of retail investors, and a large proportion of the market is off-exchange. However, it will be interesting to see the small players’ power and how much further they can push prices,” said Hussein Sayed, chief market strategist at FXTM.
After a rough week in which it lost 3.1%, the Stoxx Europe 600
rose 1.1% on Monday.
U.S. stock futures
also were higher.
Of stocks on the move, JD Sports Fashion
rose 6% after agreeing to buy DTLR Villa, a Baltimore-based athletic footwear and apparel retailer with 247 stores, for $495 million. In the 52 weeks ended Feb. 1, DTLR had earnings before interest, tax, depreciation and amortization of $45.6 million.
declined, as the shopping-mall operator said 88% of its French malls are closed, as are nonessential shops in Italy, Denmark, Germany, the Netherlands, Portugal, Czech Republic, Barcelona and Oviedo in Spain, and Oslo in Norway.