Tuesday, 12 Jan 2010

Commodities Slide as Investors Cast Doubts over the Global Economic Recovery

U.S. November's trade balance was published earlier today. Deficit widened more than expected, however currency markets showed little reaction to the data. USD was gaining against other currencies during the day after a comment made by China International Corp official Peng Juming, saying the Dollar may have hit bottom. The EUR/USD hit a daily low at 1.4461, and has since gone up, trading around 1.4500.

Stock markets have opened 4Q financial results season, with a storm. Alcoa aluminum producer published its 4Q financial results last night, which came short of expectations. Industry demand for raw material might still be weak, which cast doubts over the global economic recovery. Fears of the economy also left their impact over Oil and Gold, taking prices lower.