Week 10 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.725 / EUR 1.540
3 months CLME USD 5.720 / EUR 5.115
The coronavirus has really given fear to the financial markets this last week. Thursday and Friday the commodity prices fell below, aluminum USD 1.700 and copper USD 5.600. The virus has spread to outside China. The fear is that it will affect the global economy. But there is also positive news. The numbers of infected are falling in China, and it is now expected that the G7 counties will take economic steps to help the world trade. It is now expected that FED will lower the interest rate in March.
These positive news have increased the commodity prices again, aluminum is back over USD 1.700 and copper is back over USD 5.700.
The Chinese PMI was published this weekend, the manufacturing PMI came out at 35,7 against 45,1 at forecast. The PMI of 35,7 is record low for China, the number itself is not so important, but it shows the effect of the coronavirus, and it can be expected that we will see the same effect in the rest of the world as the virus hits other countries.
The coming period must be expected to be very volatile. There will be days where the commodity prices increase a lot, on news of falling infected people and monetary stimulus from FED, ECB etc. And the there will be days with falling commodity prices on news from PMI and other financial statements.
Factors that makes the price higher
Announcement of public stimulus in China, FED and ECB.
Trade agreements between China and USA.
Factors that makes the price lower
Low economic growth from China, US and Europe.
The trade war between China and USA. There is a possibility that there will not be an agreement before the summer 2020.