JPM eyes copper, gold equities for opportunities in weak market

J.P.Morgan says that metals and mining names were top performing sector exiting the last three recessions and it continues to forecast a "V-shape" recovery in 2025

While it's too soon to call a trough, JPM says it sees this period of weakness as an opportunity to accumulate exposure to copper and gold equities and/or miners that are strategically vulnerable

Its top picks across European metals and mining stocks are Antofagasta ANTO.L, Rio Tinto RIO.L, Lundin Mining LUN.TO, Fresnillo FRES.L, AngloGold AU.N and Hochschild HOCM.L

JPM notes that the sector has been the worst performer since new U.S. tariffs were announced, down 13%, and carries latent weakness

However, it says that the mining shares factor in a potential recession and are already discounting prices 15%-20% below current levels

JPM notes mining outperformed MSCI Europe by around 100% once markets troughed, with sector value creation triggered by China economic stimulus

It sees parallels in 2025 as JPM China economists' latest forecasts expect a new 1 trillion yuan ($136 billion) fiscal stimulus to arrive in Q3

($1 = 7.3498 Chinese yuan)