An about-turn by JP Morgan boosted shares in mining stocks...

An about-turn by JP Morgan boosted shares in mining stocks across the FTSE 100 on Monday, with the bank’s analysts calling time on two years of pessimism for the sector.
JP Morgan issued a “double upgrade” to the mining sector, moving it from “underweight” to “overweight”, pointing to signs of a rebound in Chinese activity, lower costs and recent lacklustre performances from mining shares.
“We believe the risk-reward for miners appears better due to strong cost-cutting drive, a huge past repricing in earnings and in performance, especially if near-term data flow picks up,” the bank said.
Miners, which have underperformed the wider market recently amid fears of a slowdown in emerging economies, drove bourses up, and JP Morgan’s top pick Rio Tinto was the biggest riser on the FTSE 100. The world’s biggest iron-ore miner rose 151½p, or 4.8pc, to £33.07, against JP Morgan’s £45 target price.
BHP Billiton, the bank’s other top tip, was up 51½p to £19.36, while the sector was the best performer on the FTSE 100, up 2.9pc with Antofagasta adding 27 to 796p, Anglo American advancing 37½p to £16.41½ and Fresnillo also gaining 16 to 832½p.
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“While the remainder of [the second quarter] could lack momentum, we believe this is an opportune time to build exposure ahead of expected outperformance [in the second half],” JP Morgan analyst Fraser Jamieson said.

http://www.telegraph.co.uk/finance/markets/marketreport/10825837/Market-report-Boom-time-for-mining-stocks-as-JP-Morgan-gives-sector-double-upgrade.html

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