Business Standard

Commodities up most in six months on Europe optimism

Related News

jumped the most in almost six months on that may be contained after leaders agreed to ease repayment rules for emergency loans to and relax conditions on possible help for Italy.

The Standard & Poor's of 24 raw materials rose as much as 2.6 per cent to 582.39 points, the biggest intraday gain since January 3, before trading at 581.84 at 12.15 pm in London. Crude oil jumped as much as 3.9 per cent in New York and copper rose 2.7 per cent in London. The gain in the index trimmed its quarterly loss to 15.5 per cent, still the worst since the final three months of 2008.

After 12 hours of talks that ended at 4.30 am in Brussels on Friday, leaders of the 17 euro countries dropped the requirement that governments get preferred creditor status on crisis loans to Spain's blighted banks, European Union President said. Banks can also be recapitalised directly with funds rather than going through governments, he said.

"Investor sentiment improved on news from the EU summit and many commodity prices rebounded," , a commodity analyst at OAO Promsvyazbank in Moscow, said on Friday by e-mail. "Comments by Chinese monetary policy makers on possible further rate reductions also gave them support."

European leaders discussed ways to reduce the risk premiums on Italian and Spanish bonds, which have driven concern by economists, investors and Europe's global partners including the US that the currency union risks coming apart.

Quarterly slump
The commodities gauge plunged 44 per cent in the final quarter of 2008 when the bursting of the US real-estate bubble and collapse of Lehman Brothers Holdings Inc pitched the world into a recession. Raw materials entered a bear-market last week as Europe's crisis escalated and concern mounted that the US recovery was faltering.

Losses in the quarter have been led by cotton, crude oil and gasoline, with the decline in the S&P GSCI exceeding the 7.6 per cent fall in the MSCI All-Country World Index of equities. Raw materials have also been hurt by signs of slower growth in China, the world's largest user of base metals.

Read more on:   
|
|
|
|
|
|
|
|

Read More

FMC finds huge disparity in open position & trade volume

Commodity market regulator FMC has found huge disparity between the ratio of open interest and the volume of trading in some commodities traded on ...

Quick Links

 

Market News

Mentha oil up 0.4% on pick-up in demand

Oil for April contract traded higher by 0.45%

Zinc up 0.4% on spot demand, global cues

Metal for delivery in May traded higher by 0.43%

Nickel up 1% on global cues

Rising demand from alloy-makers in the spot markets also supported the upside

On buzz of merger with HDFC Bank: JM Financial stock soars

Analysts say uptick in J M stock indicates market has some knowledge of deal possibly cooking between two companies

Investors shy away from gold ETFs

Huge closure of accounts, net outflow of Rs 2,300 cr recorded in FY14

Back to Top