EUROPEAN COMMODITIES UPDATE: Industrial commodities rebound from APAC lows as European sentiment tilts positive

Analysis details (09:52)

• WTI and Brent front-month futures have rebounded from session lows after the European cash open, with price action overnight largely dictated by broader market sentiment following the risk aversion emanating from the Chinese proper market, coupled with jitters ahead of Chinese activity data tomorrow. The data will be closely eyed by commodity trades following a string of downbeat economic data from the world’s second-largest economy, raising concerns surrounding the recovery of the nation’s post-COVID demand. While crude-specific new flow is light, energy remains in theme as LNG supply concerns are stoked by the Australian labour negotiations at three LNG facilities – which account for a little over 10% of global LNG supply. WTI has risen back to USD 83/bbl from a USD 81.98/bbl low while Brent recovered towards USD 86.50/bbl from a USD 85.63/bbl intraday trough. Dutch TTF futures have trimmed earlier gains but remain positive by around 2% intraday.


• Over to metals, spot gold moved in tandem with the Dollar in a tight USD 1,910-18/oz whilst spot silver found overnight support at USD 22.50/oz – although price action in the grander scheme is contained. Base metals have largely recovered from APAC lows and sentiment tilted more constructive in early European hours, with 3M LME hovering around the USD 8,300/t mark (vs a low of USD 8,251/t) – close to session highs of USD 8,3380/t at the time of writing.

14 Aug 2023 - 09:53- MetalsEU Research- Source: Newsquawk