This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Rio Tinto (Q1 update 17 April)
Rio Tinto's focus on iron ore will remain the chief story here, as the solid improvement in prices results in further divestments of some projects. Improved Chinese demand will also help support earnings, while cash returns should remain strong as the firm looks to continue asset sales in other metals such as aluminium and copper. A chunky dividend of 5.7% remains a key attraction for the shares.
Rio Tinto shares have fallen below the rising trendline that has held since June 2016. Worryingly for the bulls, the price has then rebounded and tested the trendline from below, but what was previously support has become resistance, with a push to £37.40 being repulsed. The next levels to watch on the downside are £34.85 and then £33.98. A daily close above £37.60 is needed to help restore the bullish outlook.
.jpg)
