Global primary commodities picked up yesterday amid slightly more positive economic news.
Although the eurozone crisis still casts a heavy shadow over the global economy, G8 support (although lacking in detail) for the eurozone was welcomed by the markets yesterday.
Additionally, signals from Chinese premier Wen Jiabao that the government there intends to prop up its slowing economy was also greeted with enthusiasm.
The S&P GSCI index of 24 commodities rose 0.2 per cent yesterday.
Brent Crude oil increased by 1.6 per cent to finish at $108.81 a barrel, which was the largest gain in seven weeks. US crude increased by 1.2 per cent to close at 92.58.
Three-month copper was up $81 to $7,731 but is likely to remain low according to one economist. Capital Economics commodities economist Ross Strachan said in a note: “Compared to the pessimism that was going around last week, there has been some recovery, but the significant move is going to be in a downward direction.”
Aluminium was up 0.29 per cent to $2,053 while lead increased by 0.77 per cent to $1,956.