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Home » Investing Videos » Why on Earth would BHP Billiton plc & Rio Tinto plc rally on a weak US jobs number?

Why on Earth would BHP Billiton plc & Rio Tinto plc rally on a weak US jobs number?

VIDEO: Owain ponders why shares rose in Rio Tinto plc (LON:RIO) and BHP Billiton plc (LON:BLT) on bad news.

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Owain Bennallack
Owain is a magpie of the investing world -- and not because he gets into a flap. Almost any style of investing might suit him, depending on the bigger picture, and he's held all sorts of companies. Paraphrasing Keynes, he says: “When the market changes, I change my mind -- what do you do?” That said, Owain is usually a buyer of equities, where he prefers lightly geared, modestly rated companies, and is increasingly on the lookout for Buffett-style intangible quality. He aspires to buy-and-hold: his best investment ideas are worth much more than he sold them for. Then again, his worst investment went bust due to management fraud!
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Shares in Rio Tinto (LSE: RIO) and BHP Billiton (LSE: BLT) soared in the wake of data showing the US economy created just 38,000 jobs in May. This could indicate the world’s largest economy is slowing, so why would cyclical shares like miners rise on such seemingly bad news?

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Owain Bennallack owns shares of BHP Billiton. The Motley Fool UK has recommended Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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