
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
2022-12-20 • Updated
At first sight, the stock dynamics of Alcoa Corporation are hardly promising.
The price started the year 2019 at around 27 USD per share. These days, it trades at the levels of 20 USD, showing a 25% drop in stock value compared to January.
On a larger scale of observation, it is about the lowest level the corporation’s stock has ever been at through the last 30 years. You may see that on a historical chart below.
Source by: www.tradingeconomics.com
The logical questions are “why is this happening?” and “what to expect?”.
First, we have to take into account the price of aluminum as it is the basic production element of Alcoa.
The price for this commodity has decreased by approximately 2% during this year, having dropped from 1800 USD per ton at the very beginning of 2019 to the current 1758 USD.
Source by: www.tradingeconomics.com
In fact, it is the continuation of a larger declining trend that has started in 2008, even if we remove the 2009 slump from the account.
Source by: www.tradingeconomics.com
The correlation between the Alcoa stock price and the aluminum price is not direct. However, a certain degree of interdependence is visible from the chart.
Extrapolating the recent and historical dynamics, one may assume that there will be no brighter future for Alcoa. Although that still may be the case, certain recent reports say that the aluminum industry and Alcoa, in consequence, may be revitalized in the nearest future.
The good news is coming from quite an unexpected side: the ecology. Global reports keep increasing the pressure on the plastic bottle producers referring to the entire islands of plastic garbage drifting in the oceans. Simple calculations make the aluminum can production a feasible alternative both from the financial and the ecological perspective (source: https://www.reuters.com/). That would definitely raise the demand for aluminum production, where Alcoa stands as a global #1.
Also, the trade war between the US and China seems to be approaching its logical conclusion. That would also improve the climate for the aluminum corporation.
Therefore, although we do have to take into account the historical dynamics, there are some global factors, which may act in favor of Alcoa and hence increase its stock’s market value.
You can trade Alcoa stocks in line with other stocks FBS offers.
To do that:
Stay updated and trade wisely!
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
More and more analysts are sure Brent oil will surpass $100 a barrel. So how heavily will oil move the markets, and what will the direction of the movement be? Let's find out!
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.