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The LME markets continue to fall lead by Aluminium. In the month of October Aluminium fell 8% in USD terms, with the demand for the other commodities also weak.

The AUD is currently trading at 71.40. The RBA meet today with a very small chance of an interest rate cut.

 

Please find the following for your perusal;

DJ Copper Prices Slip As Traders Weigh China Demand Outlook By Georgi Kantchev and Tatyana Shumsky

 

Copper prices pulled lower on Monday as investors sifted two pieces of Chinese manufacturing data for clues about future demand from the world’s top copper buyer.

The most actively traded contract, for December delivery, was recently down 0.60 cent, or 0.3%, at $2.3115 a pound on the Comex division of the New York Mercantile Exchange.

The Caixin China manufacturing purchasing managers index, a gauge of nationwide manufacturing activity, rose to 48.3 in October from 47.2 in September. Still, a reading below 50 indicates contraction and the index has stayed below this level for eight consecutive months. The official gauge of Chinese factory activity, collected by the government, was unchanged at 49.8 in October.

While the manufacturing activity reading was better than expected, “it’s not robust and it has not helped copper,” said George Gero, a senior vice president with RBC Capital Markets Global Futures.

Copper prices tend to take their cues from China’s economic data as the country drives about 40% of global demand for the metal. Recent reports have pointed to slower manufacturing and construction activity, triggering concerns about future demand for the metal.

Copper traders are also awaiting the next move from the Federal Reserve. The U.S. central bank is expected to raise interest rates at its December meeting or in early 2016, which will have a “pass-through effect on copper from the dollar channel,” analysts at Barclays said.

 



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