Global commodities have seen little benefit from the decline in the US dollar over the past few days. Traders have been focused on the upcoming Federal
Global commodities have seen little benefit from the decline in the US dollar over the past few days. Traders have been focused on the upcoming Federal Reserve speech by Janet Yellen due later today, but in the meantime the team of Federal Reserve speakers have been hitting the circuit. Signs of slowing economic growth from China to the U S pressured prices of most of the commodities to a multi-week lows. US wholesale prices unexpectedly fell for the first time in a year, while Chinese factory gate prices also dropped to a multi month low. After spiking to a five week high gold edged moderately low on profit booking. However, concerns over the global economic growth are supporting prices at lower levels. Crude oil prices on the NYMEX as well in the ICE extended fall from the lowest level in 22 months on speculation that increased US supplies are directing prices in a bear market. On the ICE Futures Exchange in the London, Brent oil tumbled to the lowest level since December 2010. Volatile moves were witnessed in natural gas futures as trades kept a cautious approach ahead of periodic inventory report from the US EIA later in the day. Elsewhere, mounting concerns over global economic prospects in the wake of a slew of downbeat economic reports from both sides of the Atlantic and Asia dragged sentiments in base metals in the domestic as well as in the international bourses to the lowest level in two weeks.
Investor sentiments were in the doldrums as fears over global economic growth gripped the market. While the economic outlook for the world’s largest economy was greener, apprehensions over economic progress in Eurozone, China and other leading economic worries the markets resulting in broad based sell offs in commodities and equities. Surprise drop in retail sales figures from the US fanned further the worries. While lingering concerns over global economic growth is likely to influence the market mood in the upcoming session, industrial production and manufacturing production from the US will be under the scanner. While both the gauges are forecast to rise, an unanticipated fall like the one seen yesterday could do more harm.