EUROPEAN COMMODITIES UPDATE: Succumb to the tepid risk tone and ongoing USD strength

WTI/Brent: -0.8%/-0.7%

• Came under pressure early-doors despite a lack of fresh fundamental drivers at the time. Pressure which took the benchmarks to fresh lows for the week and back towards the troughs from Friday; though, well within last week’s circa. USD 5/bbl parameters.


• The mentioned pressure intensified just after the European cash equity open, an open which was softer though benchmarks briefly lifted off worst before succumbing to a subdued tone post-Ifo. Similarly, US futures remain in the red but off lows.


• Attention on a report from ANZ who noted that China’s YTD oil-demand was down to 14mln/BPD, -3.3% Y/Y.


• For the space, a handful of pertinent updates though no price action from them yet.


• Firstly, Russia has pledged to retaliate against Ukrainian leadership following the assassination of Russian Lieutenant-General Kirillov. More recently, reports indicate that the IDF has approved plans for major strikes in Yemen, and is prepared to act pending government approval.

Gold: -0.5%

• Softer pressured by continued USD advances which has taken the DXY above the 107.00 mark.


• Yellow metal has been waning gradually in European hours, as the region's risk tone meanders higher. Thus far, down to a USD 2641/oz base, just below Monday’s trough, with support at USD 2627/oz from Dec. 9th.


• Ahead, Retail Sales will be watched for influence on the risk tone and USD; indications into the November release point to continued consumer resilience.

3M LME Copper: -0.7%

• Base metals spent APAC trade in very thin ranges but have since slipped to the lower-end of those and modestly into the red. Pressure which comes despite the modest inch higher in the European risk tone.


• The pressure is seemingly a function of ongoing USD advances, tepid US futures and the pullback in the European tone after a weak, in totality, German Ifo release.


• Overall, 3M LME Copper is back down to the USD 9k mark having dipped incrementally below the figure at worst.

17 Dec 2024 - 10:20- ForexData- Source: Newsquawk