JP Morgan: Resources set to soar

JP Morgan: Resources set to soar. JP Morgan has dramatically revised its rating on the resources sector from underweight to overweight on the back of increased Chinese steel demand, commodity imports and tail-winds from cost reductions. The investment bank suggests that the second half of 2014 will see the sector's free cash flow improve, capital returns potential and attractive relative valuation begin to be appreciated. The JP Morgan analysts suggest getting set ahead of the out-performance later this year, While the remainder of the second quarter could lack momentum, we believe this is an opportune time to build exposure ahead of expected second-half outperformance.