US coal stocks slide

CHINA’s announcement of moves to slow its economy and fears of a US interest rate hike hit coal company shares hard on the New York Stock Exchange this week.

Angie Tomlinson

The majors, including Arch Coal, Peabody Energy, Consol Energy and Massey Energy all fell on Monday, as much as 4.5%.

A.G. Edwards analyst Mark Reichman told Reuters News the drop was most probably a result of China’s recent announcements of action to slow the economy, possibly resulting in a fall in coal demand.

Coal stocks were not the only ones hit, with the market generally taking a downward dive on Monday.

Johnson Rice & Co analyst Williams Burns attributed the high sale of coal stock to expected interest rate hikes and the Chinese announcement, Reuters said.

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