U.S. Lawmakers To Introduce Bill In Support Of Deep-Sea Mining; Lawmaker Says Bill Would Reduce China's Hold On Critical Minerals
Portfolio Pulse from Benzinga Newsdesk
U.S. lawmakers are set to introduce a bill aimed at supporting deep-sea mining initiatives. This move is intended to diminish China's dominance over critical minerals, essential for various industries including technology and defense.
March 12, 2024 | 6:29 pm
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The bill could negatively impact China's hold on critical minerals, potentially affecting companies within the FXI ETF that rely on these minerals.
Since FXI tracks large Chinese companies, many of which are involved in mining and minerals, a U.S. move to reduce reliance on China for critical minerals could negatively impact these companies' market positions and, by extension, the performance of FXI.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
The bill could positively impact U.S. companies involved in deep-sea mining, potentially benefiting the SPY ETF which tracks a broad range of U.S. stocks.
SPY, which includes a wide array of U.S. companies, could see benefits if U.S. firms gain a competitive edge in the mining sector due to reduced competition from China and increased support for deep-sea mining.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
As a company that could directly benefit from U.S. legislation supporting deep-sea mining, TMC's stock might see a positive short-term impact.
TMC, likely being directly involved in deep-sea mining, stands to gain significantly from U.S. legislative support aimed at reducing reliance on China for critical minerals. This could lead to increased investment and growth opportunities for TMC.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80