Big-cap miners fell sharply on Monday as a strengthening US dollar and risk-off sentiment triggered by the Iran conflict weighed on industrial metals
Shares in major London-listed mining companies fell sharply on Monday, with Anglo American PLC (LSE:AAL) and Anglo American PLC (LSE:AAL)among the hardest hit as a surging US dollar and a slump in copper prices rattled investors.
Anglo, the FTSE 100 diversified miner, fell 5.7%, while Antofagasta, the Chilean copper producer, dropped 5.5% in early trading.
The sell-off was driven largely by a stronger dollar, which rose to its highest level in more than three months, making dollar-priced commodities more expensive for international buyers and dampening demand.
Copper prices fell to three-week lows, hitting both companies particularly hard given their significant exposure to the metal.
Antofagasta, as a pure-play copper producer, is especially sensitive to swings in the metal's price.
The broader backdrop was shaped by escalating conflict involving Iran, which has pushed oil above $110 per barrel and stoked global inflation fears, leading investors to price in a prolonged period of higher US interest rates.
That shift in rate expectations added further pressure on commodities, with spot gold falling approximately 1.5% to around $5,090 per ounce as rising Treasury yields increased the opportunity cost of holding non-yielding assets.
The conflict has also prompted a wider flight to safety, with investors moving into the dollar rather than industrial or precious metals.
Anglo American has faced additional internal pressures in recent months, including a $3.7 billion loss and a significant dividend cut.