Base Metals and Minerals

Wall Street posted its fourth consecutive rally last night as the Fed kept rates steady and pledged to keep doing more. The Dow rose 200 points.

The Dow added another 58 points last night but this time commodities took a bit of a hit. Which data are good data?

According to Barclays Capital, worsening economic fundamentals and increasing supply suggest little scope for shorter-term gains in commodity prices.

Index rebalancing has temporarily distorted the picture, but copper prices should have no other way to go but down.

Alcoa’s disappointing quarterly earnings result has brokers worried about the downside earnings risk for Australian listed Alumina Ltd.

Steel prices collapsed in the last few months of 2008, but Westpac sees some positives for iron ore that could limit price falls to 30% or less this year.

From a historical perspective, January is usually a positive month for global equity markets.

No Christmas cheer but investor worries are dominating financial markets. And there’s plenty to worry about, so it seems. (locked for subscribers only until 10am).

Overall investor mood has turned sour in the closing days of 2008. China cut interest rates for the fifth time since September.

Fears that a fading Chinese economy would cause further harm to an already suffering base metals market are now panning out.