How are everyone's resource stocks recently - a summary of key oil, gas, gold, and iron news (November 3)
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. $SSIF DCE Iron Ore Futures Index ETF (03047.HK)$
The risk tone across the market boosted commodity sentiment. This is due to the weakening dollar, which supports investors' appetites. Crude oil prices rose as market risk appetite generally rebounded. Earlier, the Federal Reserve hinted that it might not raise interest rates any more. The weakening dollar heightened the risk tone, which made commodities more attractive to most consumers. $Global X S&P Crude Oil Futures Enhanced ER ETF (03097.HK)$
European gas followed crude oil higher, while traders weighed winter risks against relatively weak demand. The US has imposed sanctions on Russia's Arctic LNG 2 project, which will be put into operation later this year. Following the interruption of exports from Egypt in recent weeks, this casts a shadow over the prospects for global liquefied natural gas supply over the next few months. However, as the heating season begins, the area is optimally located and storage facilities are almost full. LNG prices in North Asia fell as buyers restricted winter purchases.
Copper rose along with other basic metals amid the prevailing risk tone across the market. Aggressive monetary tightening has been a drag on the sector for the past 18 months. The possibility of no further tightening should boost market sentiment. As the market considers reports that the Yunnan smelter is now cutting production again, there has been little change in aluminum prices. According to the Shanghai Nonferrous Metals Market, an aluminum smelter in the Xinjiang Autonomous Region was not affected by the power outage and is operating at full capacity. However, the tight energy market may face the threat of disruption. Prices are also threatening the closure of mines throughout the industry. Zinc prices rose earlier this week after Nyrstar announced it would shut down two zinc mines in the US due to a sharp drop in prices.
Battery metals are still under pressure due to demand in the electric vehicle and battery markets. However, in order to take full advantage of the electric vehicle boom, China's battery supply eventually surpassed demand by a ratio of 2 to 1. This is a time when consumer demand is being affected by high inflation and an uncertain economic context. Electric vehicle sales growth, although still strong, has been declining. This has caused battery manufacturers to cut production and reduce metal stocks. Metals such as lithium, cobalt, and nickel are likely to remain oversupplied in the short term. This is likely to cause prices to continue to be depressed. Nonetheless, we still see strong long-term prospects. $GANFENGLITHIUM (01772.HK)$
Investors have reduced their bets on further interest rate hikes by the Federal Reserve, and the price of gold has remained stable. The weakening of the US dollar also supported precious metals.
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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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