Iron ore and copper hit record highs on global recovery hopes – business live

Rolling coverage of the latest economic and financial news

8.20am BST

The UK’s blue-chip share index has hit a new 14-month high in early trading.

The FTSE 100 jumped 37 points to 7113 points, as it continues to rally on hopes of an economic rebound this year.

7.58am BST

Commodity prices are surging again today, as the economic recovery creates a scramble for raw materials.

Both iron ore and copper prices have hit record levels today, extending a rally in commodities.

Iron ore at record high.

The most-liquid September iron ore on China’s Dalian Commodity Exchange leapt 5.3% to 1,214 yuan ($187.94) a tonne by 0330 GMT, after earlier touching a high of 1,217.50 yuan.

Three-month copper on the London Metal Exchange was up 1.2% at $10,209 a tonne by 0503 GMT, after rising 1.4% earlier to hit an all-time high of $10,232. The contract has leapt 133% since March last year, when demand was hit by the coronavirus pandemic.

And there we have it: copper at new record highs above $10,200.

7.56am BST

China has reported strong trade growth today, highlighting how its economy is strengthening.

Chinese exports rose 32.3% year-on-year in April to almost $264bn, slightly faster than in March.

#China’s trade surges in April:

√ exports jumped >7% m/m to an amazing 33% above 6-year trend

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√ imports up >5% m/m and are now 30% above 6-year trend (33% above pre-pandemic level), confirming a rotation in the growth drivers towards domestic demand

“China’s export growth again surprised on the upside,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that two factors – the booming U.S. economy and the COVID-19 crisis in India, causing some orders to shift to China – likely contributed to the strong export growth.

“We expect China’s export growth will stay strong into the second half of this year, as the two factors above will likely continue to favour Chinese manufacturers. Exports will be a key pillar for growth in China this year.”

China posts rapid trade growth in April as recovery races ahead

7.27am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

After the Bank of England hiked its growth forecasts yesterday, investors are looking to the latest US jobs report for confirmation that the economic recovery is gathering pace.

After a surprisingly large jobs gain last month, we think the US is poised for a repeat performance as the economic re-opening gathers momentum. We are forecasting an April non-farm payrolls increase of just north of 1 million.

We know per recent qualitative data that companies are starved for employees at the moment, and that is evident in both ISM reports and in the Fed’s Beige Book.

But on average, economists are expecting a blowout payrolls number of at least 1 million.

Nomura chief economist Lewis Alexander said market participants should brace for a “monster U.S. payroll number” this week, driven in large part by advances in some of the industries hardest-hit by the pandemic. Leisure and hospitality payrolls are still down by 3.3 million compared to February 2020 levels, but have been making some of the largest gains over the past several months to try and lessen this deficit.

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“A monster US payroll number… We expect US NFPs to well exceed 1m jobs in April” – Nomura

European Opening Calls:#FTSE 7108 +0.44%#DAX 15293 +0.64%#CAC 6378 +0.33%#AEX 716 +0.45%#MIB 24605 +0.45%#IBEX 9028 +0.51%#OMX 2260 +0.57%#STOXX 4017 +0.44%#IGOpeningCall

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