Politics, not weather, key to commodities markets
Oct 30, 2012 | 09:37 AM
| Andrea Hotter
NEW YORK Metals prices slid lower to start the week as Hurricane Sandy made its way up the East Coast, but this weakness appears to have less to do with the weather and more to do with politics.
The focus of financial markets' attention this week is on possible changes of power in both the United States and China, the former with presidential elections on Nov. 6 and the latter scheduled to begin the transition to a new leadership at the 18th National Party Congress beginning Nov. 8.
For metals market participants, the key questions for the two countries is how the results of both political events will impact growth in these two economic giants, as well as relations between them.
Admittedly, the latest U.S. growth data was not too bad. U.S. third-quarter gross domestic product rose 2 percent on an annualized basis, although government spending surged nearly 10 percent to account for 0.7 percent of this growth.
Market watchers say federal spending is likely to resume a downward path next year and could shrink even faster if further fiscal tightening takes place.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.