Recent weakness in Freeport-McMoRan (NYSE: FCX) and China lowering its economic growth forecast have weighed on exchange traded funds that invest in the materials sector and copper miners.
Freeport shares are down 13% over the past month. Analysts keep an eye on the materials-sector bellwether and copper prices to help gauge the strength of the global economy.
The stock is a top holding in sector ETFs such as Materials Select Sector SPDR (NYSEArca: XLB), iShares DJ US Basic Materials (NYSEArca: IYM), Focus Morningstar Basic Materials (NYSEArca: FBM) and Vanguard Materials (NYSEArca: VAW) at 6% or more.
China ETFs fell Monday after the country cut its 2012 economic growth target from 8% to 7.5%, an eight-year low. [China ETFs Slip on Lower Growth Forecast]
Freeport shares dropped nearly 4%, and were down a further 2% in Tuesday’s premarket.