Week 18 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.505 / EUR 1.385
3 months CLME USD 5.240 / EUR 4.830
The focus on the coronavirus is decreasing, and many countries are now slowly starting to open up again, this is positive news for the financial markets and are pushing the commodity prices upwards. But now the focus has switched to the economies after the coronavirus. Several countries have suffered much under the coronavirus. In the US the unemployment has gone up with over 26 mio. people, the airlines are laying a lot of people off, German automotive, Daimler, operating income have fallen 78% in first quarter, oil prices are recording low, as there are no storage capacity left. So there are still a lot of dark clouds out there.
The commodity market has consolidated at these levels for the moment, but the market is still very fragile and it can change quickly. It seems like the commodity market is waiting to see an effect of the opening of the countries again, and waiting to see the reaction from the oil price.
For now the commodity market is waiting to see how the economic data reacts on the opening of the countries and see if the PMIs and growth rates will start picking up again, and if the unemployment will start to fall in the US.
Factors that makes the price higher
Positve news reading economic data.
Announcement of public stimulus in China, Europe and USA.
Trade agreements between China and USA.
Factors that makes the price lower
Negative news regarding economic data.
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.