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China yuan devaluation may be good for miners says IG Group’s Mahony

Joshua Mahony, market analyst at IG Group, reckons the mining sector could be a long-term beneficiary of a weaker yuan.

China’s devaluation of the yuan this week was widely seen as bad news for mining stocks, as it exacerbated worries about the country’s future demand for raw materials.

“The expectation is that China may not buy as much, but commodities are at multi-year lows and a devalued yuan will stir up growth in terms of Chinese products, and a large part of that would come from commodity purchases.”

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