There are a number of positives to be had at the beginning of the year for the global commodity markets.
Yesterday, saw publication of the US Institute of Supply Management factory index, which showed that manufacturing sentiment in the US grew to 53.9 in December from 52.7 in November. While the equivalent Chinese Purchasing Managers’ Index (PMI) for December showed an increase to 50.3 in December from November’s 49.0. Anything below 50 suggests a contraction, so this was shown as evidence that Chinese manufacturing is growing again.
Although improved, the British PMI still indicated a contraction at 49.6 for December, this was better than the 47.7 the previous month. Germany reported a PMI of 52.4 in December from 50.3 in November in its services sector. Germany also saw unemployment fall by 22,000 to 2.89 million in December showing its economy remains strong.
As a result, metals remain stable with copper at $7,640 (£4,895) yesterday on the LME with aluminium at $2,215 (£1,419).
Oil in New York jumped 3.7 per cent to $102.51 (£65.71) while Brent Crude was up to $108.85 (£69.78).