Commodities Stocks Melt On Stronger Dollar
The U.S. Dollar Index futures (DX U1) are trading higher this morning by 0.37 cents to $74.01 per contract. As we all know by now, when the U.S. Dollar Index trades higher the leading commodity and energy stocks will usually come under selling pressure. The opposite effect will usually happen when the U.S. Dollar Index declines.
Leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and Southern Copper Corp.(NYSE:SCCO) are all declining this morning. Many of the leading energy stocks are also selling off this morning. As long as the U.S. Dollar Index continues to hold up and trade higher throughout the session it would be prudent to expect further declines on all of the U.S. Dollar sensitive stocks.