Commodities Mixed In Aftermath Of U.S. Elections - report
Commodity markets are mixed early in the day after U.S. elections, says Edward Meir, commodities consultant with INTL FCStone, Kitco News reported.
Markets were strong Tuesday, likely as investors concluded that re-election of President Obama would lead to a continuation of easy monetary policies and weaken the dollar, he says. But early Wednesday, gold is higher but energy lower, while base metals are mixed. Stock-index futures are pointing to a weaker open on Wall Street.
"The mixed performance we are seeing is telling us that investors have discounted the results of the election (likely in yesterday's performance) and have shifted their attention to other pressing issues, such as the looming fiscal cliff and a key budgetary vote going on in Greece," Meir says. "In addition, we had reminders earlier today that the global economy remains wobbly, with the Germans just reporting that industrial output this past month fell by a 1.8%, well ahead of estimates calling for a 0.7% decline. We also await Chinese leadership changes that will be unveiled tomorrow, along with statements from the new team with regard to policy."
Around of 8.50 a.m. EST, Comex December gold was US$12 higher to $1,727 an ounce, Nymex December crude was $1.03 lower to $87.68 a barrel, LME copper was $52.75 lower to $7,647.25 a metric ton while aluminum was up $11.75 to $1,931.75, and the December S&P futures were down 10.50 points to 1,414.70.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.