Week 7 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.715 / EUR 1.560
3 months CLME USD 5.720 / EUR 5.210
The outbreak of the coronavirus is still the key driver on the commodity market. It seems like most of the negative effects from the coronavirus have been priced into the market, and unless there are large negative changes regarding the coronavirus, it seems like the market have settled at the current level.
At the same time the People´s Bank of China have injected over 1,2 trillion CNY into the Money Market which have had a positive effect on the capital markets. Also the American labor market have shown positive news.
The Chinese New Year are over and people have started working again, but not at full capacity at the moment, and due to the coronavirus it is difficult to transport material as normal, so there will still be some effect to come, that can drive the commodity market up or down.
Generally there is a positive tone on the commodity market and it is expected that if there are positive news regarding the coronavirus then the commodity prices will start to rice.
Factors that makes the price higher
Announcement of public stimulus in China.
Trade agreements between China and USA.
Factors that makes the price lower
The coronavirus in China.
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.