How are everyone's resource stocks recently - a summary of key oil, gas, gold, and iron news (December 15)

Seeing how many friends like resource stocks, but don't focus on commodity news at the bottom line, we've loaded up on commodity news to make it easier for everyone to invest in resource stocks.

The Federal Reserve has sent the clearest signal so far, that its cycle of aggressive interest rate hikes has come to an end, and market sentiment has been boosted. Investors' interest was boosted by a weak dollar.

Copper prices rose along with other basic metals sectors after Wednesday's FOMC meeting, where policymakers hinted at the possibility of interest rate cuts in 2024. The move unleashed a bullish tone across the metals sector, which has been under pressure this year due to concerns about monetary tightening. The central bank's policies will influence economic growth and, ultimately, demand. Meanwhile, copper is facing supply-side problems, which will lead to a tightening of the market. The closure of Panama's Cobre mine and the reduction in Anglo-American Resources Group's business production will reduce the copper market by 600,000 tons next year. $JIANGXI COPPER(00358.HK)$

Gold consolidated gains after Wednesday's Federal Open Market Committee (FOMC) meeting made dovish comments. Precious metals soared above $2,000 per ounce as UST yields fell and the dollar weakened. A clear shift in the Fed's attitude should encourage investors to continue to invest more in the precious metals industry. Palladium soared more than 15% after the UK announced new sanctions against Russian metals. British citizens and companies will be banned from trading metals such as copper, nickel, and aluminum from Russia. Although the document does not specifically list precious metals, it is widely believed that sanctions will cover them. Russia is the second largest producer of palladium in the world.

As profit margins of Chinese steel mills continue to weaken, the iron ore market is in trouble. The rise in coke prices is the latest investment cost that is putting pressure on the industry. This could cause steel mills to relax steel production, thereby hurting iron ore demand. $SSIF DCE Iron Ore Futures Index ETF(03047.HK)$

Crude oil fell into a buying wave after the Fed clearly changed its tone around monetary policy. Both the European Central Bank and the Bank of England have kept interest rates stable, and supporting interest rate hikes is a view of the past. This is due to the weakening of the US dollar, which makes dollar-denominated commodities such as oil more attractive. This offsets concerns about weak demand. The IEA said oil demand growth is slowing sharply as economic activity in major countries weakens. It lowered its demand forecast for the fourth quarter of 2023 by 400kb/d and expects a significant slowdown in growth next year. It also said that surges in production in the US, Brazil and Guyana will offset production cuts in Saudi Arabia and the OPEC+ alliance. $PETROCHINA(00857.HK)$

LNG prices in North Asia hit a four-month low as winter purchases dried up. Demand was sluggish at the beginning of the heating season, which satisfied high inventory levels. According to Bloomberg, offshore liquefied natural gas cargo is also piling up, and the volume of maritime traffic over 20 days jumped to the highest level since 2017. Gas prices in Europe have also declined due to weak demand from residential consumers.

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3047HK Iron Ore ETF

3047 is a team specializing in the research of commodities and smart beta. We like to exchange investment strategies.

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