Whilst USD LME prices remained relatively steady overnight, the rising AUD/USD has resulted in commodities when quoted in AUD terms, falling again. With China on National Day holidays from October 1- 7, most metal buyers are happy to wait until after the holidays before quoting any prices. Its been a depressing month on the commodity markets with USD LME Copper falling over 20% and USD LME Nickel falling over 15%. In other precious metal commodities falls have been worse, with Silver at one stage down 16% on Friday night alone.
Please find the following article for your perusal;
DJ BASE METALS: NY Copper Snaps Selloff As Traders See Bargain By Matt Day Of DOW JONES NEWSWIRES
Copper carved out slight gains Monday as some investors viewed the market’s steep two-day slide to 14-month lows as a good opportunity to buy, and stronger equities lifted sentiment. Futures plummeted 13% during the previous two sessions, as worries about a slowdown in global growth and instability in Europe’s financial system rattled industrial commodities. The metal fell victim to a risk-off trade in which investors dumped assets seen as risks should the global economy stumble, said Matt Zeman, head of trading with Kingsview Financial. But U.S. equity indexes edged higher Monday on hopes for coordinated action to address Europe’s debt crisis. Major European markets also ended the day with gains, providing a lift to the battered copper market.
Speculative investors, who as recently as July had been overwhelmingly bullish on the prospects for copper, began to bet that demand for industrial metals in particular would fall as the European and U.S. economies struggle. Worries mounted in recent weeks that Europe would be unable to prevent a default-spurred credit crunch, and downbeat economic outlooks by the Federal Reserve and International Monetary Fund last week pressured growth-sensitive assets. ”These are not markets for the faint of heart,” traders at RBC Capital Markets said in a note. “Whether this is finally the bottom we’ve all been looking for remains to be seen.”
Copper is vulnerable to such shifts in economic sentiment because of its widespread uses across industries, from housing and auto manufacturing to consumer electronics, and the metal can track equities markets as a proxy for investors’ view of the economy.