Base Metals and Minerals

Obama’s infrastructure package and a plan to assist the auto industry provided further impetus for market confidence last night, turning commodity prices on their heels and sending the Dow up 300.

A much worse than expected jobs number was the catalyst for a 260 point rally in the Dow.

Barclays Capital has been bullish on metals prices, but now it expect prices to weaken further into the early part of 2009.

There was more slashing going on across the globe last night than a B-grade movie as central banks took the axe to rates and global companies took the axe to their workforces. The Dow fell 215.

The Dow wobbled its way to up 170 as Wall Street tired of more depressing economic data.

Recent falls in commodity prices are matching the declines of the Great Depression, with the exception of copper.

After Monday’s big fall the Dow returned to post a 270 point rally to make six up-days out of seven. (Locked for subscribers until 10:00 AEDT)

The so-called Santa Claus rally in equities is real according to Barclays Capital’s analysis of monthly trends, while conditions also favour aluminium and the euro.

Weak economic data across the globe extinguished a week of rallies last night sending the Dow down nearly 700 points.

The Dow added another 102 points in the shortened holiday session to mark five consecutive up-days.