How are everyone's resource stocks recently — Summary of key oil, gas, gold, and iron news (August 31)
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 bad news is also good news; weak US economic data has lowered expectations of another rate hike. The risk tone that followed helped boost commodity sentiment. $SSIF DCE Iron Ore Futures Index ETF(03047.HK$
Gold's gains extended to the highest level in more than three weeks due to lower expectations for another rate hike by the Federal Reserve. US GDP declined, and ADP data showed that the number of new jobs added in the US in August was the lowest in five months. This could give the Federal Reserve room to pause at its next meeting in September. The dollar reversed earlier gains, while US Treasury yields fell slightly, increasing the appeal of gold. $SD GOLD(01787.HK$
Crude oil prices rose after another sharp decline in inventories. US commercial inventories fell 10.6 mbbl last week, driven by a sharp decline in the Gulf Coast region, according to EIA data. The decline in imports and the recovery in exports also played a role. There are clear signs of strong demand in the product market, with implied gasoline demand (on a four-week basis) rising for the first time in three weeks. Supply-side issues also underpin prices. The military of Gabon (an OPEC member) announced the cancellation of weekend elections and the dissolution of the country's institutions, but there were no reports of disruptions in crude oil flows.
Global gas prices rose slightly as traders await the results of labor negotiations for the Australian LNG business. Workers at the Gorgon and Wheatstone LNG export facilities issued a notice that the strike could begin as early as September 7. Negotiations with Chevron are ongoing. This is happening at a time of tepid demand in Europe. Industrial consumption is weak, and there are still a few weeks until the heating season. High inventories have also brought some comfort, although the impact on its main supply sources in the coming months will present significant challenges. North Asian LNG spot buyers remain on the sidelines and are satisfied with inventory levels. Japanese inventories are at the same level as the five-year average, while Chinese inventories are likely to reach 90% of storage capacity next month. $YANKUANG ENERGY(01171.HK$
As the market digests Beijing's latest move to support the economy, industrial metals have mixed ups and downs. The People's Bank of China is drafting initial policies to help private businesses better access finance. Earlier, it was reported that China's largest banks are preparing to lower interest rates on existing mortgages and deposits. Despite this, there are signs of strong demand for certain metals. China's refined zinc imports rose to 76.8 tons in July, the highest level in more than five years. In the first seven months of this year, imports increased 300% year over year. Aluminum prices have risen as concerns about China's supply have once again intensified. Despite the recent restoration of idle production capacity in Yunnan, the challenge of ensuring sufficient hydropower is still huge. Despite continued pressure on China's real estate sector, iron ore futures rose.
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3047 is a team specializing in the research of commodities and smart beta. We like to exchange investment strategies.
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