Base Metals and Minerals

All is forgiven. The Dow closed at a new record high last night as Citigroup aired its dirty laundry.

One of the more highly anticipated IPOs for the final quarter of 2007 is living up to expectations closing three weeks in advance and heavily oversubscribed.

The Dow closed off the quarter with a small down day.

Participants at Metal Bulletin’s recent Stainless and Special Steel summit in Finland were broadly positive on the market outlook and expect nickel prices to move higher.

Jobs numbers were good, housing numbers were woeful (which is good), oil shot up again (which is good for oil stocks) and end of quarter window dressing is in play.

The Dow ratcheted up another 100 points last night driven largely by GM. Bear Stearns rumours also fuelled the fire along with a very poor durable goods number.

After much anticipation BHP upgraded its Olympic Dam total ore resource by 75%, but its 2P resource by only 7%.

Base metal prices have peaked according to National Australia Bank but there is further upside in the bulks and rural commodities, particularly wheat and dairy.

A slew of poor economic data and profit reports sent the Dow off into negative territory last night, before everybody remembered the Fed was standing ready.

The run in copper prices has not finished according to Barclays Capital as while resistance levels are approaching the group expects further gains.