China’s economic outlook and a stronger dollar lowered the attractiveness of commodities, ending with losses in Thursday’s session.
In addition, the Chinese government said that energy-intensive industries such as steel, aluminum, cement and oil refining should ensure that more than 30% of their production capacity meets stricter energy efficiency standards. by 2025.
The targets, posted on the National Development and Reform Commission (NDRC) website, were set to put China, the world’s largest emitter of greenhouse gases, on track to meet its commitment. to become carbon neutral by 2060.
The main falls were aluminum, which lost 5.36% in the session on the Chicago Derivatives Exchange (CME), and is quoted at a price of 2.905 dollars per ton, while zinc had a fall of 4% to sell for $ 3,421 per tonne.
Copper also had a loss of 3.89% in the session, to trade at a price of 9,789 dollars a ton.
For its part, oil slumped on Thursday, after a forecast of a warm winter in the United States halted a rally that took prices to a three-year high above $ 86 a barrel at the beginning of the session due to a shortage of supply and a global energy crisis.
North Sea Brent crude fell 1.41% or $ 1.21 to $ 84.61 a barrel, after hitting a session high of $ 86.10, the highest since October 2018. United States West Texas Intermediate (WTI) crude closed with a fall of 1.63% to 82.50 dollars a barrel.
The Mexican export mix operated at 77.64 dollars per barrel, which meant a 0.83% drop compared to the previous close, according to Petróleos Mexicanos (Pemex).
Winter weather across much of the United States is expected to be warmer than average, according to a report from the National Oceanic and Atmospheric Administration released Thursday morning.
“The report, which indicates drier and warmer conditions in the southern and eastern United States, is putting pressure on the complex,” said Bob Yawger, director of Energy Futures at Mizuho.
Breath
On the contrary, in the energy market, the price of natural gas ended the day at 2.33 pounds sterling per million British thermal units, which represented an increase of 3.50% in Thursday’s session on the London Derivatives Exchange (LME ).
“Prices have risen rapidly in recent weeks, so it is not surprising that they continue to consolidate for some time,” said Bill O’Grady, Head of Market Strategy at Confluence Investment Management.
But the fundamentals remain the same: insufficient supply, rising demand and the approach of winter in the northern hemisphere. “To go higher,” according to O “Grady,” it will be necessary for the dollar to weaken or for reserves to begin to decline rapidly, which is going to happen, “he estimated.
“The negative movements in the markets are due to concerns about inflationary pressures and the situation of the real estate sector in China by Evergrande. Thus, in Asia most of the stock exchanges closed negative ”, explained a daily Banorte report.
For grains, corn was down 1.25% to $ 5.32 per bushel on the back of a daily export advisory and higher input costs for next year.
“The strengthening of the dollar makes commodities less accessible to investors who have another currency and reduce their value. The increase in the yields of the Treasury bonds raises the opportunity costs of maintaining investments in raw materials, which do not accrue interest ”, according to a Banco Base report.
Precious metals were the most resilient yesterday. Gold touched 1,784.75 dollars per ounce and fell 0.07 percent. While silver touched a price of 24.22 dollars per ounce and fell 0.89 percent.
Banco Base added that “the strengthening of the dollar and the increase in Treasury bonds occurred due to an increase in risk aversion in financial markets due to the downside risks to global economic activity.”
“Higher inflation raises the possibility that central banks will continue to withdraw stimulus, in a context in which the economy does not finish recovering. The broadly flexible monetary policies of central banks led gold to reach its all-time high of $ 2.75.47 per ounce last year, ”explained Gabriela Siller, director of Economic Analysis at Banco Base.
Reference-www.eleconomista.com.mx