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

Futures contracts for gold declined with European trading after it was high in the Asian session : with the beginning of today’s hours, futures contracts rose by 0.66%, to be traded at a price
09-2020 21 09:52:41

Gold futures rose for December delivery according to the Asian session on Friday. As it increased by 0.47%, to be traded at the price of 1959.00 dollars per ounce, and it was previously traded at a
09-2020 18 06:02:31

Oil prices rose this morning, due to the halt in oil and gas production due to a hurricane in the United States of America, as the price of crude oil increased by approximately 1.5%, reaching 41.13 d
09-2020 16 06:30:20

We open the trading week with a rise in gold prices today, after it witnessed a decline in the last days of last week, as it is a safe haven for investors, especially when crises that negatively affe
09-2020 14 06:22:57

Gold prices experienced a remarkable decline at the beginning of the week after it concluded its Asian trading at a high, affected by the great rush of investors, if this morning the gold futures con
08-2020 31 08:11:31

More News

Logs

Advertisements