J.P. Morgan turns bearish on metals and mining.

Morgan Stanley analysts said in a report on Monday that the history of European metals and mining stocks could be repeating itself. They explained that these stocks plummeted by about 40% in 2022 due to the impact of global economic growth and monetary policy from energy price shocks related to the Russia-Ukraine conflict. "Events in the Middle East also bring similar risks, but these risks have not been fully taken into account: 1) Industrial metal prices have remained essentially unchanged since the conflict began, but they are a high-beta performance of global economic growth; and 2) European mining and steel stocks, despite being the weakest sector in the MSCI European sector last week, we predict this sector will face more than 10% downside risk," Morgan Stanley analysts said.