While overnight equity, bond and FX markets traded in a narrow range as a result of scarce mid-summer liquidity, mounting Trump administration and geopolitical concerns and uncertainties ahead of Friday’s Jackson Hole symposium, the same can not be said about the latest “berserker” action in the commodity space in general, and industrial metals in particular, where China’s horde of momentum-chasing speculators were unleashed overnight, sending Zinc to its highest since October 2007 at $3,180.50 a tonne, the bellwether industrial metal, and “doctor”, copper surged to to $6,593 a tonne, its highest since November 2014, while nickel, used in stainless steel production, gained over 2 percent as it reached a 2017 peak.
Additionally, iron ore futures traded in Dalian soared more than 4% fueled by concerns of shortages and before curbs on futures purchases which are touted to come into force in the next few months.
This post was published at Zero Hedge on Aug 21, 2017.
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