Seeking Alpha

Steel names surge on trade hopes

|About: AK Steel Holding Corporation (AKS)|By:, SA News Editor

Steel stocks are among the big winners in early trade amid renewed optimism for a U.S.-China trade deal: X +9%, AKS +8.3%, CMC +5.4%, MT +5%, STLD +4.9%, WOR +4.1%, NUE +3.9%, RS +2.5%.

It's not just the tariffs, as a resolution of the trade dispute likely would lead to more confidence for spending and investing by industrial companies, which have been in a state of limbo for many months, as noted by Briefing.com.

Another modest tailwind seems to be GM's update on labor negotiations, as automotive is a key market vertical for steel names.

ETF: SLX

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