Commodities: Weaker across the board - ANZ

Research Team at ANZ, notes that the commodities were weaker across the board, with investors taking little solace from the better than expected economic data from China yesterday.

Key Quotes

“Oil came under heavy selling after the EIA released its monthly report showing it expected the surplus in the market to persist well in 2017. OPEC also released its market report, with the group reversing its forecast of a fall in non-OPEC production in 2017.

Iron ore fell sharply as the impact of weaker Chinese steel futures prices weighed on the market. Base metals initially jumped on the economic data, but were eventually weighed down by the slump in oil and weaker equity markets. Copper was the only metal to hold its ground, with supply disruptions in Chile providing some support.

Gold also struggled as investors continue to ponder the likelihood of an interest rate hike in the US in the near future.”