World markets hammer higher on rising metal prices

Global stock markets mostly rose Friday, with miners buoyed by higher metal prices, and after more Wall Street records.

Most Asian and European equities forged higher as investors eyed advancing prices of many metals like gold and copper.

Star performer Frankfurt rallied to stand 1.0-percent higher in early afternoon deals, with steelmaker Thyssenkrupp jumping than 4.0 percent higher to top the risers’ board.

London was however hit partly by poor UK retail sales data.
“A strong start for commodity stocks comes amid strengthening copper, iron ore, and gold prices,” noted IG analyst Joshua Mahony.

“Meanwhile, a disappointing set of retail sales figures should be put in the context of shifting shopping habits,” he cautioned.

British retail sales slid 1.5 percent in December from the previous month after consumers had brought forward their Christmas shopping, official data showed.

Retail sales had already jumped by 1.0 percent in November, boosted by Black Friday price reductions, the Office for National Statistics said.

– Asia pushes higher –

Asian markets mostly rose Friday after another positive week across trading floors.

Gains were also tempered by lingering worries over a potential US government shutdown.

Wall Street came off record highs Thursday to end lower as Washington lawmakers bickered over a federal funding deal, which must be passed by midnight on Friday US time.

The House of Representatives passed a bill on Thursday but there are increasing concerns the Republicans do not have enough votes in the Senate to send the budget to President Donald Trump’s desk.

Failure to find agreement — with Democrats looking for concessions on immigration — would see various parts of government shut down. Trump told reporters a closure “could very well” happen.

An extended shutdown in 2013 hit the US economy and led to a downgrade of its sovereign debt rating, though analysts are not too concerned at the moment.

“As usual, the focus is back on Washington,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“Of course, a government closure will have minimal impact on the US economy and the sun is sure to rise on Monday, but the markets will temporarily wobble in predictable unthinking fashion if lawmakers fail to table a last-minute agreement.”

Unease over Washington’s uncertainty is adding to pressure on the dollar, which is down against its major peers as well as most high-yielding currencies.

– Oil beats retreat –

Oil prices retreated on profit-taking despite official data on Thursday showing US stockpiles fell more than expected. That came a day after an industry group’s report pointing to a seventh consecutive drop.

With Brent around $70 a barrel and three-year highs, analysts said crude could struggle to move much Reuters

In a separate development on Friday, the International Energy Agency said the United States is set to overtake Saudi Arabia as the world’s number two oil producer after Russia this year, as shale companies ramp up drilling.

Source:AFP