The Australian mining sector and investors are bracing for another horror day on the stock market after overnight falls in share prices. There are grown fears of the downturn and resources commodities in Australia. Yesterday saw a lot of panic selling by investors when it came to the mining sector on the stock exchange.
The mining company Glencore with its large dead has played a major role with the hiton the financial markets. Then are now concerns that the banks may call in debts on mining companies which could lead to another financial crisis. Some feel that the mining company could be the mining sector is very own Lehman Brothers.
In a press statement released by the mining company Glencore they said “Our business remains operationally and financially robust — we have positive cash flow, good liquidity and absolutely no solvency issues,”
The production of copper has also been it’s worst since 2011 and it today continues like yesterday it will be its worse since 2009.
Asian markets also suffered a slide yesterday after concerns of the slowdown in China would dent its massive demand for commodities.