Copper and aluminium drop to six-year lows
Weak Chinese manufacturing sector data out overnight was dragging the prices of some industrial metals to six-year lows in early trading on Friday.
Three-month copper futures were down to $5,202.5 per metric tonne on the LME, its weakest level since 2009, and those on aluminium at $1,634 a ton.
On Thursday Goldman Sachs analysts lowered their medium-term price forecasts for the price of copper, which was heading towards its worst week since January after losing almost 5% - although other analysts were less bearish.
Even in a country that accounted for 20% of the global population and 13% of its gross domestic product, private consumers in the People’s Republic of China could not be expected to consume half the world’s copper as the government-led investment drive cooled, Goldman Sachs told clients in a research note on 23 July.
The bank lowered its price forecasts for copper in 2015, 2016, 2017 and for the longer-term to $5,670, $4,725, $4,500 and $5,000 per metric tonne, from $5,724, $5825, $7,000 and $6,000 previously.
In parallel, front-month Brent crude futures were edging higher by 0.22% to $55.39 per barrel on the ICE.
The Shanghai Stock Exchange Composite Index finished 1.29% lower on Friday at the 4,070.91 point mark.
Front month gold futures on the other hand were losing 0.92% to reach $1,084 per ounce out on COMEX.
Euro headed towards parity, Deutsche Bank says
Euro/dollar on the other hand was slipping by just 0.05% to reach 1.0977.
On 24 July Deutsche Bank said: “[Our analysts] think the European outflow story remains fully on track and as for the Fed they think the Fed's re-investment policy on QE assets is a bigger deal than the timing of rate hikes.
“Nearly half a trillion dollars of their balance sheet matures in 2016, almost equivalent to a full QE program in reverse. This potential 'QT' is important to their view over time. Nearer term they continue to target parity by year-end.”