19 August 2015 by pdonnat
Having being hammered this year, investors are trying to find the turning point for European commodity companies. It is too early. GLEINT ( Glencore PLC) is the casualty of the day. Glencore managed quite well the decline in commodity prices. They are limiting the damages. The market applauded first. The stock opened up 4% in London. But the global sell-off in commodity markets today has just cancelled any positive sentiment. The stock is closing down 10% and the CDS 27bps wider. Glencore.is eventually under-performing its peers due to speculative positive expectations. Timing any pick up in commodity prices will be key for investors but we should remind ourselves on the fate of Drogo, the main character of The Tartar Steppe.