ASIA-PAC COMMODITIES UPDATE: Demand outlook hit after IMF’s China GDP downgrade

Analysis details (02:48)

WTI and Brent futures are on a softer footing despite a softer Dollar but in wake of the IMF cutting China’s 2022 growth outlook to 3.2% from 4.4%, which dampens the demand side of the equation for the complex. Furthermore, sentiment is on the backfoot and somewhat fragile after US equities saw Amazon slump around 20% post-earnings. WTI Dec hedges closer to USD 88/bbl to the downside whilst Brent Jan just dipped under USD 94.,50/bbl. Spot gold is flat in a tight USD 4/bbl range and under its 21 DMA at 1,667.86/oz. Base metals are softer with Dalian iron ore falling some 3% at the open, whilst 3M LME copper trims some of the gains seen yesterday – with IMF’s outlook on China hampering the demand outlook.

28 Oct 2022 - 02:47- MetalsData- Source: Newsquawk