Do copper industry execs know something the market doesn’t?
Euro zone headlines and fear of Greece’s exit has meant industrial metals have nearly wiped out 2012 gains after copper and the euro hit a four month low yesterday.
Commodities
Russia’s economy in trouble as oil falls
As U.S. consumers applaud lower gasoline prices, our gain is someone else’s pain. As with any trade, there are two sides: stock markets that depend on the price of crude oil are feeling the pinch as prices move lower.
The dollar is back up in dangerous territory for emerging markets
The DXY, more familiarly known as the “dollar index,” is up 3% since the month began. That may not look like a huge move, but given the longer-term trend and the recent past, it’s enough to give emerging market traders pause.
Commodity prices and U.S. dollar waiting on 2pm Fed statement
Sour sentiment from Asian markets has continued into the euro zone session, sending commodity prices lower still as traders continue to exit growth-sensitive commodities like copper and crude oil, and into safe haven assets the U.S. dollar and Japanese yen.
Finding the winners in Chinese materials
The “dogs of the Dow” approach is well known in U.S. large-cap investing, but global traders can find endless ideas picking through the wreckage of the worst-performing emerging market ETFs as well. At the moment, the Global X China Materials fund (CHIM, quote) qualifies as the dirtiest dog at the table.
Morning coffee brief
U.S. futures point to a positive open on the back of the euro zone being green across the board with a ray of light penetrating the European cloud of uncertainty.
The strong dollar has food prices on the run
Talking about shifting planting patterns and China’s hunger for corn is all well and good, but in an environment where the U.S. dollar is riding high, just about all major commodity markets are feeling the pressure. Food is not immune.
Industrial metals brief
The euro zone has forced industrial metals down for two straight weeks with no sign of the pressure letting up as economic data suggests China is slowing even more than analysts thought.