Breaking News

Gloom reigns over commodity markets

News Date: 2/2/2016 00:47:45
A spate of weak manufacturing data around the world, a weaker global growth and rampant uncertainties have pushed commodities lower en masse. China's manufacturing sector contracted at its fastest rate in more than three years in January, while the U.S. equivalent sector tumbled for the fourth consecutive month. The Eurozone's data also disappointed markets, completing a gloomy picture across the globe.

As for oil prices, negatives were doubled, as expectations of a deal between Russia and Saudi Arabia to cut production were put back, while forecasts of a milder weather in the U.S. fanned fears of weak demand in the rest of winter ahead. Brent crude futures lost a heavy 74 cents, or 2.18% to trade at $33.50 a barrel, while U.S. crude futures tumbled eighty cents, or 2.53% to $30.84, threatening to go under the crucial level of $30 again.

Metals weren't luckier, even the precious of them, with gold futures slipping two dollars, or about 0.20% to $1,126 an ounce. Silver futures dropped six cents, or 0.40% to $14.28 an ounce. Copper, a crucial industrial metal, gave up 0.60% to trade at $2.050 a pound.

As for Asian equity markets, they were mixed, with Chinese shares rallying 2,23% in short-covering and hopes of more stimulus from the government. Other markets were tipped lower, with Japan's Nikkei sliding 0.90%. Australian shares wrote off one percent, South Korea's KOSPI dipped 0.40%, while Hong Kong's shares eased 0.83%.

Wall Street closed largely flat on Monday, as energy shares plunged following the dismal showing of oil prices, but that was offset by a strong performance by tech companies, with Alphabet (parent of Google) rallying following stronger-than-expected fourth quarter earnings, making the company the biggest in the United States, taking that title from struggling Apple.

The Dow Jones Industrial Average inched down 17 points, or 0.10% to 16,449, while tech-heavy NASDAQ Composite edged up six points, or 0.14% to 4,620. The S&P 500 index fell less than a point to 1,939.

Investors wait for a basket of data today, with Britain's construction PMI on the forefront, expected at an amazing-as-usual 57.6 in January, almost the same expansion as December's 57.8, which would buoy sterling.

From the Eurozone, the German Unemployment Change survey is forecast at -7K in December, continuing the recent trend of lower unemployment, while the whole zone's unemployment rate is expected at 10.5%, same as November's. A slide lower in unemployment results would cheer the euro.

Latest news

Stocks in the United States closed lower at the end of yesterday’s trading, after the Chinese protests against the policies of Covid 19 raised economic concerns, to accompany the shares indices
11-2022 29 01:22:11

The dollar rose at the beginning of the week’s trading , due to the rush of investors towards it – as a safe haven – and after the Japanese yen fell due to the uncertainty that over
11-2022 28 02:00:56

Recent news/events in the cryptocurrency industry have put pressure on cryptocurrencies, as uncertainty remains alongside the general negative trajectory in the markets, affecting investors’ de
11-2022 25 02:29:41

The dollar fell today because of investors’ appetite for risky assets. The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell by 0.
11-2022 24 05:23:41

US stocks closed higher on Tuesday, amid limited trading. To accompany its indicators upward, gains were recorded in the oil and natural gas, basic materials and technology sectors. At the end o
11-2022 23 01:35:33

More News