Janet Yellen signalled increase confidence in the US economy, and reaffirmed the case for a rate hike at the next December FOMC meeting but reiterated that the decision will be data dependent, while ECB’s additional stimulus measures disappointed the market. Despite oil rebound, commodities slid overnight. Iron ore dropped to a decade low and copper retreated to 5.5 years low. With the commodity price gloomy outlook and global demand growth continue to slow down, it’s not surprising that OTAS indicated negative signals on one of the global miners name Rio Tinto.
From a valuation perspective, RIO P/Book value is the most expensive name compare with its peers.
RIO’s cost of credit has risen to 161.26 bps, significantly higher than the mean over the past year (101 bps) and up by 5.8% in the past week.
Heavily shorted name – Rio Tinto’s 1.5% of free-float shares are on loan, up by 27.8% in the past week, unremarkable compared with previous five-day moves.
Insiders sold shares lately – Group Director, Gregory Lilleyman, sold 13,000 shares at $50.78 last month.