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Home : Commodities : COMMODITIES Rout pauses cheered by equities c bank moves
COMMODITIES Rout pauses cheered by equities c bank movesCommodities markets ticked higher on Monday, recovering from their sharpest ever weekly loss, but questions remain whether governments can release the log-jam in credit markets and save the global financial system.
Countries from Europe to Australia rushed out plans on Sunday to shore up their banks, giving equity markets a boost -- the ASX 200 in Sydney rose 5.6 percent, while South Korea's KOSPI rose 4.1 percent, after closing on Friday at the lowest since July 2006. "Equities markets are up, so I am feeling a little bit brighter after Friday's bloodbath across markets," a commodities dealer in Sydney said. In Europe, government leaders committed to provide capital for banks caught short of funds because of frozen money markets and agreed to insure or buy into new debt issues, the latest in a series of bold measures. [ID:nLC11122] Australia also announced measures to support its banking sector and a U.S. Federal Reserve official said the central bank would consider all options in seeking to stabilise credit markets. But investment bank Goldman Sachs said the financial crisis had already done more damage than it expected to commodity demand, forcing it to dramatically cut price targets. Goldman, once one of leading bulls in the commodities herd, turned a near-term bear on Monday, warning that $50 oil was possible if the crisis deepened and forecasting copper prices could fall almost 30 percent further. http://in.reuters.com/article/domesticNews/idINSP5923620081013 366 times read
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