Base metals and precious metals on October 4
On October 4, the stocks related to base metals and precious metals fell. The PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell 1.1% and ~4.1%. The SPDR Gold Shares (GLD) fell ~3.5%.
Glencore plans to strengthen its balance sheet
Glencore (GLNCY), the multinational mining and trading giant, plans to strengthen its balance sheet by offering buybacks up to $1.25 billion. According to the statement released by Glencore on October 3, it offered to buy notes that are due in 2018 and 2019. Glencore plans to bring down its debt to $16.5 billion–$17.5 billion by the end of 2016. At the end of 1H16, Glencore’s debt was at $23.6 billion—compared to $29.6 billion at the end of 1H15. Last week, Rio Tinto (RIO), the Anglo-Australian multinational miner, announced an offer to repurchase bonds worth $3 billion.
Since the beginning of 2016, Glencore gained more than 107%. At 11:50 AM EST on October 4, it was trading at $5.47—a gain of ~0.28%.