Commodities: Generally higher - ANZ

Research Team at ANZ, notes that oil prices rose yesterday after talk of an output freeze and as OPEC producers suggested prices had fallen too far.

Key Quotes

“OPEC members signalled their desire to discuss the issue at next month’s International Energy Forum. Base metals were also stronger, lifted by data showing Germany’s industrial production grew strongly in June. This was despite data showing China’s copper imports fell sharply in July. A combination of high inventories and weak seasonal demand should see import demand remain tepid over the next couple of months.

Iron ore was dragged higher by further gains in the Chinese steel market. Sentiment was also supported by the strong level of iron ore imports into China. Gold struggled to keep its head above water as Friday’s strong jobs report in the US kept investors on the sidelines. Prior to this, investor demand was strong, with ETF holdings climbing 8.32 tonnes to 2,039.5 tonnes on Friday.”