How are everyone's resource stocks recently - oil, gas, gold, and iron key news summary (07/11)

I read that many friends like resource stocks, but they don't focus on the summary of commodity news. Serializing commodity news makes it more convenient for everyone to invest in resource stocks.

China's weak economic data dampened sentiment across the commodities market. This was offset by a weak dollar, which helped support investors' appetite.

Chinese data showed that after consumer inflation leveled off in June, copper prices fell in Asian trading. This is the lowest interest rate since February 2021, raising concerns about economic recovery. It also increases the risk of deflation and brings some uncertainty about the possible impact of any stimulus package. According to the data, passenger car sales in China fell 2.6% year on year to 1.89 million units in June, which did not help market sentiment. However, according to PCA data, electric vehicle purchases increased 25% year over year to 665,000 units. Taking into account the additional quantity required for the metal, this should ultimately have a net benefit on the demand for metals.

It is difficult for iron ore futures to maintain their rise after weak economic data. Despite reports that China will increase its support for real estate developers, this is still the case. Regulators have announced they will allow delays in partial loan repayments. Lenders will also be encouraged to increase their support to ensure delivery of homes under construction. According to reports, a major iron ore exporter said China has a “serious real estate problem.”

The weakening dollar also helped reverse the earlier decline in the gold market. However, traders remained cautious until the consumer price index data was released. Even with inflation falling, the market still expects the Fed to raise interest rates later this month. The market is seeking support from sovereign investors. According to an Invesco survey, they still favor gold as a hedge against inflation.

European gas fell sharply due to increased inventories and sluggish demand. Dutch benchmark futures fell by more than 10% after the data showed that European gas reservoirs were over 79% full. This is still well above the seasonal average. However, the market remains concerned about continued supply risks. The weather forecast and the Rhine water level are also in focus. Temperatures in Germany are above normal seasonal levels, putting pressure on electricity demand. Due to low summer demand, North Asia's LNG market transactions remain sluggish. Higher prices and weak industrial activity dampened Chinese demand.