Posts Tagged ‘China’
Oil Declines as Economic Data Frustrates Traders
Oil declined today as the signs of slower economic growth in China and concerns about the situation in Europe caused speculation that demand for fuel will decline.
The optimism, caused by the revealing the plans for rescuing Greece and other indebted nations of the European Union, quickly evaporated and traders still are caution, resulting in sluggish trading. Greek Prime Minister George Papandreou said he’s going to put the bailout plans for Greece to a referendum. The country may face a default in case the referendum would result in negative vote.
China’s Purchasing Manager’s Index declined to 50.4 in October from 51.2 in the month before, while an increase was predicted. The data from the US was also negative as the Chicago PMI also declined. A decline was expected, but only to 59.2, while the index actually fell to 58.4 in October from 60.4 in September.
Brent crude oil fell from $109.44 to $108.90 per barrel today as of 2:54 on ICE, following the drop from $110.14 to $109.19 yesterday.
Copper Surges on Europe, Bears Still Have Hopes
Copper futures jumped after the European leaders at last revealed some of their plans to resolve the unpleasant situation with debt in peripheral economies. Yet bears don’t feel completely smashed by the news as the rally of the industrial metal may end despite the support from Europe.
The European leaders agreed to increase the bailout fund. The European banks will voluntary write down 50 percent of Greece’s debt. Traders were waiting for good news from Europe for quite some time and after receiving such news were ready to risk in search of profit instead of playing safe. The resulting risk appetite spurred commodities across the board.
Bears aren’t disappointed, though, as the end for the European debt story is far away and the problems are still plaguing the Eurozone. China also makes the futures of industrial metals, and copper in particular, uncertain as the slower economic growth in the Asian nation can damp demand. And don’t forget that there is the US with its problems. All in all, copper currently is in good grace of traders, but its prospects are unclear.
Copper traded at $3.6970 per pound as of 2:07 GMT today in electronic trading on COMEX, following the surge to $3.6890 from $3.4880 per pound yesterday.
China & Europe Show Signs of Improvement, Metals Surge
Industrial metals, including copper and nickel surged today, after the European Union summit ended this weekend and China’s manufacturing expanded. Among gainers were also aluminum, lead, tin and zinc.
The European leaders discussed the measures to support the region’s banks. They were also working on the plans to end the sovereign debt crisis that likely will be revealed at the summit on November 3. The forceful restructuring of Greece’s debt was rejected.
China was showing signs of slower economic growth and that was bad for commodities in general and for industrial metal in particular. Today’s report about China’s manufacturing brought some relief and encouraged traders to invest in metals. The HSBC Flash China Manufacturing Purchasing Managers’ Index increased to 51.1 in October from 49.9 in the month before.
Copper settlement advanced from $3.2190 to $ 3.4470 per pound today as of 23:50 GMT on COMEX. Spot price for nickel jumped from $945.90 to $996.0 per kilogram on MCX today.
Can Silver Make Bulls Happy Again?
The slump of silver in September left traders wondering if the precious metal lost all bullishness that was so apparent at the beginning of the year. It’s truth that the metal shows a tremendous volatility, yet bulls haven’t lost all hopes yet.
The credit problems in Europe can potentially increase demand for silver as a precious metal. The recovery in the US also isn’t certain. The attempts of central banks across the world to weaken currencies of their nations made commodities, and precious metal in particular, preferred assets for safer investment.
The role of silver as an industrial metal also isn’t forgotten. While the economic problems in the Western nations may prove negative for the metal, the robust economic growth in Asia provides a strong demand. China, the biggest consumer of the white metal among emerging markets, shows especially strong growth. The growth slowed somewhat at present, but that’s not completely bad as a slower rate of expansion decreases probability of a government’s intervention to cool the overheating economy.
Spot price for silver was at $30.73 per ounce today as of 3:35 GMT on COMEX, following the drop from $32.05 to $31.22 yesterday. The price slumped from $39.80 to $30.56 in the huger
Global Economy Slows Down, Copper Goes Lower
The global economic turmoil and uncertainty about the recovery reduce appeal of commodities to traders. Copper, like most other industrial metals, dropped on the mounting signs of a slower recovery.
China’s gross domestic product expanded 9.1 percent in the third quarter from a year ago, showing the slowest pace of growth since 2009. The conditions for New York manufacturers worsened as was shown by the Empire State Manufacturing Index that was at -8.5 in October. The ZEW Indicator of Economic Sentiment for Germany declined to -48.3 in October from -43.3 in the previous month.
December futures for delivery of copper fell 0.5 percent to $3.36 per pound by 13:21 on COMEX. The prices have declined 26 percent in the three months ended September 30, posting the biggest quarterly drop since the end of 2008.
Copper at New 14-Month Low in Commodities Downfall
The overall bearish market in the commodities and expectations of a lower demand for copper due to the global industry contraction led copper to a new minimum level in last 14 months. The metal is currently showing its worst monthly decline since October 2008.
Market participants see little point in betting on copper in the face of the expected recession wave that will probably hit both developed and emerging economies. China, the biggest consumer of copper, will likely have to reduce its imports if GDP growth falls short of the government forecast next year.
Copper is currently leading, along with nickel and cotton, the list of the most bearish commodities this year. It was expected before that the lower production numbers will stimulate the price growth for this metal. Now the analysts cut their price forecasts before the London Metal Exchange Week that will be held next Monday and will shed more light on the state of the industry.
Copper COMEX continuous price fell from $323.55 to $315.00 per 100 pounds as of 15:40 GMT today. It reached its daily low at $311.45 — the lowest level since July 2010. This month copper is showing 24.6 percent drop.
Agricultural Commodities Slump as Risk Aversion Persists
Agricultural commodities declined today as the negative effect of yesterday’s monetary policy statement of the US Federal Reserve continued to affect markets today. The Fed announced its plan to replace the
The Standard & Poor’s GSCI Index slumped as much as 5.2 percent. Silver, copper and crude oil were the major contributors to the decline. The Thomson Reuters/Jefferies CRB Index of slid 4.4 percent to the lowest level in nine months.
December contract for delivery of corn slipped $0.3575 (5.2 percent) to $6.50 per bushel by 13:15 on CBoT, the biggest decline since October 1. November futures for delivery of soybean fell $0.375 (2.8 percent) to $12.83 per bushel, following the drop to $12.81, the lowest price since March 15. Futures for delivery of wheat in December dropped $0.33 (4.9 percent) to $6.3375 per bushel, the biggest fall since June 30.
Europe’s Trouble Hasn’t Solved, Commodities Suffer
Most commodities fell today as the European leaders haven’t reached any decision regarding the region’s debt problems. Copper and oil were among losers. Gold gained, as it usually does in times of troubles and uncertainty.
European finance ministers discussed over the weekend the situation with Greece, but haven’t reached any progress in finding appropriate way out of the nation’s debt troubles. Talks about a default in Greece are heard more and more frequently among market participants. The speculation about additional tightening in China also has its negative influence on most markets.
December futures for delivery of copper slid as much as $0.163 (4.2 percent) to $3.7685 per pound on COMEX before trading at $3.7765 per pound by 10:29. October future for for delivery of crude oil dropped $1.61 to $86.35 per barrel, the lowest price since September 12, and traded at $86.85 as of 13:28 on NYMEX. December contract for gold delivery gained $33.30 (1.9 percent) to $1,814.70, the biggest advance since September 8, at 13:49 in New York.
Crude Jumps on Fear of Storm, Copper Fells on China’s PMI
Crude oil jumped to the highest level in four weeks today in New York as energy companies evacuate platforms from the Gulf of Mexico on forecast that a storm may develop in that area. The National Weather Service increased probability that a tropical storm will develop in the area in the next two days from 60 percent to 80 percent chance today. Worries about potential disruption of oil supplies made prices surge. October futures for delivery of crude oil rose $0.12 to $88.93 per barrel on NYMEX, the highest settlement prices since August 3. October futures for Brent crude fell $0.56 (0.5 percent) to $114.29 per barrel on ICE.
Copper fell as manufacturing in China, the biggest consumer of the metal in the world, expanded less than predicted. China’s Purchasing Managers’ Index, according to the China Federation of Logistics and Purchasing, was at 50.9 in August, while forecasters promised it to be at 51.2. Traders become concerned as manufacturing in Asia and Europe slows. Futures for delivery of copper in December fell $0.044 (1 percent) to $4.1605 per pound by 13:00 on COMEX.
Traders Feel Optimism, Copper & Oil Gains, Gold Retreats
Positive macroeconomic data from Europe and China, as well as hope for additional stimulus for the US economy, returned some risk appetite to markets, bolstering crude oil for the second day and spurring copper to the highest level in a week. At the same time, gold retreated from record high.
The Flash HSBC China Manufacturing PMI advanced from 49.3 to 49.8 in August. The Markit Flash France Services PMI jumped from 53.2 to 56.1. The Markit Flash Germany Manufacturing PMI stayed at 52.0 this month, while a decrease to 50.9 was predicted by market analysts. The Flash Manufacturing PMI of the Eurozone was at 49.7, compared to market expectations of 49.6.
Contract for delivery of crude oil in October advanced $1.02 to $85.44 per barrel on NYMEX. December futures for copper delivery rose $0.0395 (1 percent) to $4.0145 per pound as of 13:30 on COMEX, the biggest advance since August 11. December futures for delivery of gold slid as much as 1.2 percent to $1,838.90 per ounce today after yesterday spot price for gold fell 3.7 percent, the biggest drop since February 2010.
