Monthly Metal Review
- October 2018
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- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
Gold and the U.S. dollar soared whilst sterling, copper and other metals and oil struggled after UK voters approved leaving the European Union. The vote shocked global markets and unleashed political uncertainty. Moodys said the vote hurt the UK’s medi-um-term growth outlook and lowered its long-term issuer and debt ratings to negative from stable. Zinc and tin initially fell to three-week lows, but losses were less drastic than in other commodities. Analysts said that since China is the biggest metals customer, Brexit could have a less-than-massive impact on supply-demand fundamentals.
Britain’s vote to leave the European Union should have a minimal direct impact on Latin Ameri-can countries, given the limited commercial ties be-tween the two regions analysts said on Monday follow-ing the results of last Thursday’s vote.
National Australia Bank (NAB) forecast loss of another 50,000 jobs in Australia’s already-slimmed mining sector. The bank said mining investment is likely to plunge 70 percent in the next three years. Most mining-job losses would be in Western Australia and add to some 46,000 lost between 2012-13 and 2014-15. Mining investment accounted for two-thirds of Aus-tralia’s economic growth between 2011 and 2012, when it was about 8 percent of GDP, compared to 4.25 per-cent now and likely fall to 1.25 percent.
A weak U.S. jobs report and fears of Brexit quashed what was a possible June Federal Reserve interest-rate rise and dimmed prospects for a July hike. The U.S. economy added just 38,000 seasonally adjusted jobs in May. Job gains averaged 116,000 monthly during March, April and May, compared with an average of 229,000 last year. Actual Brexit shock could eliminate any 2016 rate hikes.
Rebounding raw-material prices relieved pres-sure on miners as the Rio Tinto group planned to buy back billions in debt, its second debt repurchase in two months. Priority will be on repurchasing 2018-due notes, Rio said. Then it will consider offers from bond holders with US$5.2 billion in bonds due 2020-2022. It bought $1.5 billion of its notes in April and May.
LME owner Hong Kong Exchanges and Clearing said it plans a metals-trading platform on China’s mainland. Pending regulatory approval, a new free trade zone near Hong Kong, Qianhai, is to host the platform, with warehouses and IT systems, before expanding into other physical commodities. HKEx bought the LME in 2012 at the top of the commodi-ties boom for US$2.2 billion.
The former banker and World Bank economist Pedro Pablo Kuczynski won Peru’s peridency. He defeated the daughter of former President Alberto Fujimori.