Base Metals and Minerals

The Dow closed down 92 in another volatile session which saw oil fall over US$6.

An early rally spurred by Fannie and Freddie failed last night as traders realised the overall implications. Regional banks were crucified. The Dow fell 45.

The Dow closed down 128 having been down 250 on rumours surrounding the US mortgage lenders and Israeli jet fighters.

The copper market is hearing rumours of a secret stockpile of around 800,000 tonnes of copper in Chinese warehouses but according to Barclays Capital there is little substance to back them up.

The Dow rose 81 points in other volatile session as oil spiked suddenly and financials stared death in the face.

Sick of scrambling to secure raw materials from tight supplies, South Korea announced it would triple stockpiles.

The S&P 500 crashed into official bear market territory last night led down by the financial sector. The Dow fell 236 points.

Weekly musings by your editor. Let’s suppose high oil prices are here to say. Does anyone still see any benefits in portfolio diversification?

Danske Bank remains bullish on aluminium given the expectation China will soon switch to being a net importer of the metal and prices are currently close to the cost of production.

Oil fell over US$5 last night as a coordinated Bernanke/Paulson/Dimon rhetorical effort bolstered the greenback and turned the financial sector on its heels. The Dow rallied 152.