Miners optimistic on China growth

Resources Corner

Stronger than expected trade data from Australia’s largest trading partner China has injected optimism into the mining sector. AMP’s Chief Economist, Dr Shane Oliver details which sector he believes will perform in 2013 and the biggest joint ventures of the week are revealed.
Chinese trade data lifts
China’s export and import growth rose more than expected at the end of 2012. China’s General Administration of Customs reports the nation’s trade balance increased to $US31.6 billion in December, with exports jumping 14.1 per cent and imports lifting 6 per cent in the month from the year before.
China CPI beats expectations
China’s consumer price index has risen more than expected while the producer price index has fallen more than expected. The National Bureau of Statistics reports China’s consumer price index rose 2.5 per cent while the producer price index fell 1.9 per cent in December 2012 from the year before.
Mining states cut into jobs growth

Job advertisements in Australia fell to a three year low at the end of last year, weighed down by decreased employment demand in the mining states. ANZ Banking Group (ASX:ANZ) has reported job ads dropped for the tenth straight month, down 3.8 per cent in December from the month before and 16 per cent down from the year before.
Turning to commentary and FNN spoke to AMP Limited’s (ASX:AMP) AMP Capital Investors Head of Investment Strategy and Chief Economist, Dr Shane Oliver about which sector he believes will perform in 2013:
“Well my feeling is that we’re coming into a pickup in global growth and that as we go through the year Australian growth will start to pick up as well. Against that backdrop I think, yes, there’s a strong case to maintain an exposure to yield players- telco’s and banks for example- but I think there’s also a strong case to start edging towards resources stocks and I think resources stocks could be the big surprise of the next 12 months.”
To watch more of the interview click here.
Joint ventures and partnerships
Fortescue Metals Group Limited (ASX:FMG) has abandoned a proposed deal which would have seen the iron ore miner move into the oil and has sector through buying an 18 per cent stake in Oil Basins Limited (ASX:OBL).
Gold and base metal explorer Ark Mines Limited (ASX:AHK) surged after inking a deal with Arafura Resources Limited (ASX:ARU) to mine, farm-in and joint venture two of Arafura’s gold projects in the Northern Territory.
Oil and gas producer Beach Energy Limited (ASX:BPT) and JV partner Blue Energy Limited (ASX:BUL) have been granted two exploration permits in Queensland’s Maryborough Basin.
Exploration company Fox Resources Limited (ASX:FXR) rose after signing a Memorandum of Understanding with Pilbara Minerals Limited (ASX:PLS) to establish a joint venture over Pilbara’s Western Australian tenements. 

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