Market Insights & Analysis

Read our analysts' daily briefings, together with our Market Snapshot reports.

18 Jan 2016 08:48
Spot iron ore prices stabilised above $40/tonne last week as the steelmaking raw material faced another week of under pressure prices. Front month Brent futures slipped to a fresh multi-year low on Friday as the bears dominated the entire session, pushing the global crude benchmark as low as $28.82/bbl. A quiet session for economic data today and with a US market holiday for Martin Luther King Jr. Day we anticipate a relatively subdued European session.
15 Dec 2015 08:18
US natural gas prices slumped to their lowest level in over a decade as warm weather conditions saw the supply glut increase. Crude oil benchmarks hit a fresh low for the year on Monday as both front month Brent and WTI contracts faced renewed selling pressure early on with intraday moves hitting $36.33/bbl and $34.53/bbl respectively before a late stage rally. Iron ore prices continue to face significant headwinds at the start of this week with very little to indicate prices may recovery any time soon.
11 Dec 2015 08:24
Iron ore prices slipped to fresh year-to-date lows with the benchmark TSI 62% Fe CFR Tianjin index settling at $37.50/tonne yesterday. The dollar index managed to build on near term support around 97.400 yesterday as the greenback strengthened against a basket of major currencies, trading back above the 50 day MA and targeting 98.000. Investors will be eagerly awaiting the release of the Bank of England’s inflation outlook for the next twelve months, which could offer some hints of when policymakers may start considering an increase in UK rates.
30 Nov 2015 08:32
Iron ore prices slipped below $40/tonne on Monday after facing considerable headwinds last week. Three month LME copper prices look to be heading lower today as the red metal trades under pressure early on, failing to capitalise on last week’s late gains. The euro is set for its worst monthly performance since March as a growing number of economists expect the ECB to announce additional stimulus efforts at this week’s meeting.
29 Oct 2015 08:30
As expected the US Fed kept interest rates unchanged as the FOMC concluded its two day meeting yesterday, but hints of a December rates rise saw equity benchmarks in the US rally strongly towards the close. The dollar benefited from renewed Fed hawkishness with the dollar index rallying firmly towards 97.800 yesterday after consolidating around below 97.000 the previous day. Spot iron ore prices headed back below $50/tonne yesterday as demand for the steelmaking raw material from Chinese steel mills continued to decline.
13 Aug 2015 08:13
Asian stocks saw some semblance of calm overnight as major benchmark indices across the region pushed into positive territory. We could see an increase of dynamic intervention by the PBOC as it seeks to clarify how its sets the reference rate, now taking into account the previous day’s close as well as current supply and demand when it sets the fixings for the coming session. An explosion at a northern Chinese port has left 44 dead and hundreds injured according to early reports. Spot gold prices posted gains for a fifth straight day yesterday as the yellow metal found firm support around the previous sessions close and pushed higher towards $1,125/oz.
01 Apr 2015 15:28
European stocks got off to a strong start to the first session of Q2 as economic data released earlier today indicated that the recovery in the eurozone is well on track, dispelling concerns that have kept the pressure on risk assets in recent sessions. It’s been a tough first quarter for commodities as global demand growth struggled to lift off and ample supplies skewed the fundamental balance. Seaborne iron ore has been particularly hard hit by off balance fundamentals, exacerbated by a stronger dollar, with the TSI 62% Fe CFT Tianjin benchmark price leading the worst performers for the quarter as it ended Q1 at $51/tonne, down almost 28% since the start of the year.
23 Sep 2014 08:47
Iron ore, which remains key export of the Australian economy, extended its year-to-date price drop to more than 40% overnight. China’s equity markets extended declines overnight despite the fairly robust Chinese economic data.
29 Aug 2014 14:34
Risk assets remained under pressure throughout the last trading session of August as ongoing unrest in Russia showed no signs of abating before the weekend. The euro had a hard time holding onto opening levels today with price swings lower earlier on testing support levels around 1.3160 before swinging on the upside towards tentative resistance at 1.3200. Spot iron ore prices declined to a two year low this week, with the TSI 62% Fe CFR Tianjin benchmark index trading towards $87.3/tonne yesterday.
19 May 2014 07:44
Asian stocks got off to a shaky start to the week as Chinese equity indices led a widespread decline in the region. Spot gold prices are struggling to stage a breakout despite building on support at the 100 day MA in early trading. Iron ore prices dropped towards $100/tonne reaching its lowest level since September 2012 as investors remained pessimistic regarding the demand outlook from China
09 May 2014 08:04
Three month LME nickel prices rallied 4.2% higher yesterday, posting gains for a third straight session as tighter fundamentals continued to support the metal higher. The euro declined from a 2 and half year high yesterday as the currency pulled back towards 1.3840 against the dollar where support at the 50 day MA held firm. Iron ore prices dropped to their lowest levels since September 2012 as the TSI measure pulled back towards $103/tonne 62% Fe CFR Tianjin on increasing port stocks and slowing demand which have put pressure on finished steel prices.
11 Mar 2014 08:15
Iron ore prices plummeted below $105/tonne 62% Fe CFR Tianjin on the weaker Chinese trade balance, sparking fears that rising finished steel inventories and iron ore port stocks could lead to a prolonged depression in spot prices. US stocks spent most of yesterday’s session under pressure as market participants mulled over the weaker Chinese export data, causing the S&P 500 to pullback from record levels. Asian equity indices rebounded during overnight trading as the BOJ maintained monetary easing measures as the impending sales tax increase in April could potentially lead to a sharp contraction in growth.
21 Feb 2014 09:20
Weaker manufacturing PMI readings coming out of both China and the US has put significant pressure on crude steel output in China which has dropped 3.2% in January y/y. With the growth outlook in the US looking tentative as the Fed withdraws QE domestic Chinese prices could fall further as both flat and long steel stocks continue to rise.
30 Dec 2013 09:37
Asian equity markets climbed higher on Monday, tracking gains in Wall Street. The Euro holds strongly above 1.37 area against the US dollar. Crude oil prices continue their strong upside momentum with WTI oil contract holding above $100 per barrel for a second consecutive day following a bullish EIA oil inventories report.
11 Dec 2013 08:43
US markets consolidated yesterday on budget concerns and tapering expectations as both the S&P 500 and DJIA closed 0.3% lower. Asian markets extended losses during overnight trading, following the European and US sessions lower as the recent budget deal shifted focus back to stimulus concerns which weighed heavy on investor sentiment. Three month LME copper prices rose for the third consecutive session yesterday, climbing above $7,150 as investors considered the recent Chinese data releases. Iron ore prices gained further support from recent encouraging data, with the TSI 62% Fe index rising to $139.40/tonne from $135.90/tonne four weeks ago.