Risk-on tone saw commodities stronger across the board - ANZ

Research Team at ANZ, suggests that a risk-on tone saw commodities stronger across the board and a slightly weaker USD and gains in equity markets helped improve the appeal of commodities.

Key Quotes

“Oil led the gains, after a week long period of selling ended sharply on the back of short covering by investors. Metals were also stronger, with nickel surging to a 10 month high. Concerns over falling Philippine nickel production continue to support prices.

Despite another strong inflow of metal in LME warehouse, copper also ended the day higher. Inventories are now at their highest since February (at 235kt). Iron ore prices were dragged higher by rising steel prices in China. Impending steel mill closures in Hebei continue to support this market, but remain a risk over the medium term with steel production expected to fall. Gold was the big loser in the sector, with the risk-on tone seeing investor demand wane.”