ArcelorMittal ( MST ) stock may resume its downward path

ArcelorMittal is consolidating, but risks remain on the downside

ArcelorMittal’s share price could resume its downward path in the coming weeks as economic fears return. The manufacturing PMIs in the main economic regions, the Chicago PMI and the unemployment support in the US all disappointed in early December, thus reinforcing fears of a recession.

However, markets remain relatively calm in the near term pending the US inflation data on Tuesday and the outcome of the FOMC meeting on Wednesday night. While these catalysts are likely to be decisive for markets in the near term, the underlying trend should remain unchanged as a recession with a sharp deterioration in the labor market now seems inevitable.

If this forecast proves correct, ArcelorMittal stock should be under severe pressure in the coming weeks due to the industry’s very high sensitivity to the health of the global economy. This is because when financing costs rise and the economy does poorly, investment falls, especially in the construction or automotive sectors.

ArcelorMittal share price daily chart – key levels

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