Global markets continued to fall this week as the fall in commodity prices continued unabated. Both the TSX Composite and Venture Indices fell to 52-week lows on the back of continued falling oil prices, led by WTI crude which fell below the $30 per barrel level for the first time since 2003 as Iran prepared… Continue Reading
Global markets greeted the Chinese holidays on Thursday and Friday with relief following the capitulation of Chinese stock markets and the high volatility experienced by global equities and commodities in recent weeks. This capitulation continued early in the week on the back of China’s official manufacturing PMI index, which fell below the 50 mark in… Continue Reading
Global Markets Rattled as Shanghai Index Crashes and Grexit Looms The ongoing Greek crisis and the continued collapse of the Shanghai and Shanzhen Indices (subsequently rebounding Thursday and Friday) dominated news during the week, with commodity prices and mining equities crashing; the S&P/TSX Global Mining Index fell below the 57 mark before recovering slightly at… Continue Reading
Referendum on Greek Austerity Draws Near At the time of writing, the people of Greece were preparing for a referendum on whether to accept austerity measures imposed by creditors as part of a bailout the country desperately needs. Negotiations stalled after Greece and its creditors failed to reach an agreement on conditions for releasing emergency… Continue Reading
Gold Price Lower After More Positive U.S. Jobs Data The price of gold was down on Friday following more positive employment data from the U.S. (see page 2). Private sector employment was particularly robust for May, adding over 200,000 jobs compared to the month prior. As shown in figure 1 (page2) unemployment and change in… Continue Reading
Iron Ore Price Surge Short-Lived as Long-Term Fundamentals Take Hold It appears the two week surge in the price of iron ore was short-lived as reality surrounding the steelmaking industry in China (accounting for ~50% of global steel production) took hold. The 62% Fe import price failed to break the $60 psychological barrier and suffered… Continue Reading
Precious Metals Steady Despite Renewed Concerns of a Greek Euro Exit The week saw re-escalating concerns surrounding Greece’s ability to finance its sovereign debt. There is growing speculation that finance ministers will not grant further financial support to Greece after the next Eurogroup meeting beginning next Friday (April 24th), resulting in a debt default that… Continue Reading
Gold and WTI crude prices spiked during the week after the crisis in Yemen intensified as Saudi Arabia began military incursions against Houthi rebels who had overtaken much of the country in recent months and removed President Abd-Rabbu Mansour Hadi from power. Saudi Arabia has a long history of political influence over its southern neighbour,… Continue Reading
Gold Rises After Fed Tempers Interest Rate Forecast Playing down expectations of an interest rate rise in the short-term, the Federal Reserve’s speech was reflective of a negative week in economic data in the U.S., translating to a depreciating dollar and rebound in precious metals prices. Major economic indicators including housing starts, industrial production and… Continue Reading
Strengthening Dollar/Weak Chinese Data Continue to Weigh on Commodities It was another difficult week for base/precious metals, as the U.S. dollar continues to strengthen, and economic data out of China continues to disappoint. In particular, gold slid further towards $1,100 per ounce, although some commentators argue the slide is less than what would be expected… Continue Reading
Friday Plunge in Gold Price After Better-Than-Expected U.S. Job Numbers The price of gold plunged on Friday after better-than-expected U.S. jobs figures, with the country’s economy expanding by 295,000 jobs in February compared to 239,000 in January, while the unemployment rate fell to 5.5% from 5.7%. Gold fell $32 on Friday, and finished at $1,167… Continue Reading
Copper Continues Rebound on Positive Manufacturing Data This week saw the continued rise in the copper price after the red metal dropped as low as $2.42 per pound in early January. The early year decline was exacerbated by a dramatic ~8% decline over two sessions, marking the lowest price of copper since July 2009. However,… Continue Reading
Gold Dips Below $1,200 As “Grexit” Concerns Ease On Friday, euro zone finance ministers drafted an agreement that could see Greece’s financial rescue package extended; however, there are still significant hurdles to any agreement, with Greece’s biggest creditor, Germany, demanding “significant improvements” to reform commitments by the leftist Greek government. The draft comes as the… Continue Reading
Does Early-Year M&A Activity Signal Market Bottom? A recent spate of friendly M&A deals announced since the start of the year raises the question: Do these deals signify the beginning of the end of a bear market that has lingered for over 3 years? These M&A deals also coincide (but are not necessarily related to)… Continue Reading
Gold falls as Oil undergoes biggest two week rally in almost two decades The price of gold slumped on Friday following positive job data out of the U.S.; non-farm payroll figures showed 257,000 jobs were added in January; well ahead of the 228,000 forecast, and higher than December’s 252,000. Despite the unemployment rate rising slightly… Continue Reading
