Archive for November, 2012

Can Chinese manufacturing offset sluggish US and Eurozone activity?

Friday, November 23rd, 2012

China ShanghaiHSBC’s purchasing managers’ index (PMI) for China has rebounded into positive territory in November, for the first time in over a year. This month’s PMI is reported at 50.4, indicating growing manufacturing output which should be bullish for industrial commodity markets.

Chinese authorities continue to ease bank lending reserve regulations, and investment and domestic consumer demand are expected to rise, potentially halting recent declines in China’s growth rate. Whether this is sufficient to counteract falling exports to the still-fragile Eurozone and USA remains to be seen.

Traders Eye Prices, Following Election Win

Sunday, November 11th, 2012

Presidential election, impact on commoditiesHot on the heels of President Barack Obama’s re-election to a second term in the White House, oil prices shot up to their highest level in the previous fortnight. During the final weeks of the presidential election campaign, oil commodity traders had seen a decline in prices but after the defeat of Republican challenger Mitt Romney had become clear trading figures rose.

This news appears to indicate that traders are speculating that Obama’s victory points to a continuation of the policy of monetary stimulus in the U.S. that can augment some dollar denominated commodities.