OCT 6th - 11th - COMMODITIES - WEEKLY MARKET OVERVIEW OCT 12th Commodities Drop Near 5-Year Low on Growth, Glut Concerns - Gold shines as OPEC faces oil glut - Gold & Grains Rebound; Oil Crushed To 4-Year Lows Global growth fears remain one of the key drivers of financial markets at the moment, and this was also highlighted at the latest Federal Reserve meeting in which the Federal Open Market Committee raised concerns about weak economic growth in the Eurozone and the potential impact this could have on the US economy and dollar. The market took this as a sign that Fed funds may not be raised as soon as the market had been led to believe, which in turn helped attract some profit-taking in the dollar (which had already weakened after strong support was found earlier in the week, especially around the 1.25 level against the euro). Commodities traded near the lowest since 2009 as oil extended a slide into a bear market amid signs of ample supplies, while industrial metals dropped on concern that slowing growth from Europe to China will sap demand. “Commodities have been hit not only by fears of a slowdown in Europe and in China, but also by ongoing increases in supply for some commodities,” Jesper Dannesboe, a senior commodity strategist at Societe Generale SA, said by telephone from London. “Oil is oversupplied, there’s a supply story on many agricultural products,” and the dollar’s gain over the past few months has weakened demand for raw materials, he said.
Posted on: Sun, 12 Oct 2014 06:19:03 +0000
Trending Topics
Recently Viewed Topics
© 2015