It may still be too early to be bullish on metals and mining stocks. Axiom analyst Gordon Johnson believes the Federal Reserve’s hawkish commentary last week will trigger another leg down for a number of global metals, mining and mining equipment stocks.

According to Johnson, the biggest pressure on these stocks will come from China, where Axiom is predicting significant further devaluation of the yuan.

Johnson also predicts a softening in China property prices in coming months. April’s numbers were mostly positive on a year-over-year and month-over-month basis, but Johnson pointed out that they were more mixed than in previous months.

“Of course, w/ loans for real estate dev in Apr. reined in from multi-yr. highs seen n Mar. + the fact that home prices increases continue to accumulate to tier-1 cities (Beijing, Shanghai, Guangzhou, & Shenzen), yet the three provinces that contain these cities were just 13.9 percent of total Apr. sales + gov’t curbs in Shenzen still taking hold, we expect…

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