American Quantitative Easing Dominated Commodity Market Direction
Come, easy, easy go, vigorous major adjustment in international commodity markets actually ended dramatically in favor of commodity prices over the past two weeks, the Jedi counterattack, the strongest financial attributes of gold, copper and crude oil varieties once again walk in the the head of a large force. This wave of rapid rebound in crude oil increases, and Copper & up to 12% over the same period of rising international price of gold has more than 6%. At press time, the international price of gold and the three-month LME copper price has exceeded $ 1,425, respectively, the highest / oz and $ 9,000 / ton, refresh the historic highs. Main crude oil contract for the United States on the disk wear 90 U.S. dollars / barrel, reaching a new high stage in two years.
Federal Reserve Chairman Ben Bernanke issued may continue to “print money” remarks stirred the market on inflation concerns. December 5, Bernanke has been cautious to the CBS said the U.S. economy “not likely” be second bottom, he did not promise to expand the bond purchase plan, but does not rule out its possibilities. He said the Fed may “when necessary” bond purchase 600 billion U.S. dollars to expand the scale in order to prevent the U.S. economy back into recession.
Obviously the big words out of investors by surprise, because both had a number of economic data showed the U.S. economy is gradually recovering the right track. Many people even expected, as the U.S. economy relative to Europe’s turn for the better, the Fed on the QE2 (the second round of quantitative easing) the demand has become less urgent, and perhaps do not need QE3 out. But on Friday’s U.S. payrolls figures investors awoke unexpectedly weak U.S. employment rate of economic recovery is still a lack of support, the so-called strong dollar is also not stable. Industry experts said Bernanke’s comments could mean the market will be more liquidity, which means that some commodities will continue to rise, or the dollar to decline further.
Among them, copper and crude oil rose from investors in commodity market liquidity, increased expectations, investors believe the central bank will continue to help stimulate the fragile U.S. economic recovery to support the demand for raw materials. In addition, parts of Europe and the U.S. this year, the cold weather, stock and other fundamentals of the tension of copper were also boosted their prices. Meanwhile, gold hit record highs to avoid the risk of inflation or because of funding large-scale presence, Barclays Capital, the data show that the global gold stock ETF’s holdings have increased to a record high of 2151.3 tons, showing that the upsurge in investor risk aversion. In addition to these three commodities, the measure of 19 kinds of major commodities in the CRB index rose to 10 November the highest level since, as most commodity prices. Industry sources said the rapid recovery from the part of the international commodity to the level before the November crash, and even the case of high courage, the U.S. policy of quantitative easing is still firmly controlled by the movements of the general direction of commodity markets, a number of strong financial attributes The varieties may be more wide open up space.
Author Bio: I am a professional editor from China Suppliers, and my work is to promote a free online trade platform. http://www.xpshou.com/ contain a great deal of information about biometric door lock,teak shower bench,remote control presenter, welcome to visit!
Category: Business Management
Keywords: biometric door lock,teak shower bench,remote control presenter,