This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13305462
The article has changed 13 times. There is an RSS feed of changes available.
Version 6 | Version 7 |
---|---|
Commodity prices remain volatile after sharp fall | |
(about 1 hour later) | |
Commodity prices have remained highly volatile, with prices falling sharply before rebounding. | |
It comes after markets were hit by one of the biggest sell-offs in two years on Thursday. | |
Brent crude fell 5.8% to $105.15 a barrel, adding to an 8.6% drop on Thursday, before recovering to $110. | |
Industrial metals also saw further sharp swings, as did cotton. But stock markets held up, suggesting fears over the world economy may be limited. | |
Copper futures were down a further 1.75%, following a 6% slide a day earlier, before recovering. | |
Meanwhile, the price of US sweet, light crude oil fell a further 5.5% on Friday morning to $94.63 a barrel, but then recovered to above $98. | |
Shares resilient | |
Prices of precious metals - such as gold and silver - held steady during the morning, despite having previously followed other commodities sharply lower during Thursday's market rout. | |
Stock markets also proved resilient, with European shares mostly recovering from initial falls by mid-morning. | Stock markets also proved resilient, with European shares mostly recovering from initial falls by mid-morning. |
The movements indicate that fears over the health of the global recovery may be contained for now, despite disappointing data on US benefit claims and German industrial orders. | The movements indicate that fears over the health of the global recovery may be contained for now, despite disappointing data on US benefit claims and German industrial orders. |
All eyes will now be on the US Labor Department, which will release April unemployment figures later on Friday. | All eyes will now be on the US Labor Department, which will release April unemployment figures later on Friday. |
The dollar also remained stable against other currencies on Friday morning, in contrast with Thursday, when a sharp rise in the greenback contributed towards the fall in commodity prices, which are measured in dollars. | The dollar also remained stable against other currencies on Friday morning, in contrast with Thursday, when a sharp rise in the greenback contributed towards the fall in commodity prices, which are measured in dollars. |
'Scary' correction | |
Analysts warn the volatility in the markets could remain. | Analysts warn the volatility in the markets could remain. |
"When you have this kind of damage, it will take several weeks, or maybe several months... for confidence to be rebuilt," said Dennis Gartman, author of a markets guide. | "When you have this kind of damage, it will take several weeks, or maybe several months... for confidence to be rebuilt," said Dennis Gartman, author of a markets guide. |
"It's not the end of the commodities cycle, not even close. You still have to call this a correction. It's a sizable one and scared the heck out of everybody." | "It's not the end of the commodities cycle, not even close. You still have to call this a correction. It's a sizable one and scared the heck out of everybody." |
However, other analysts suggest that it could mark the beginning of a more sustained fall. | |
Emma Pinnock, energy analyst at Inenco, sees the oil price dropping back below $100 a barrel within days if not sooner, as markets realign supply and demand. | |
"Ultimately the price increases that we saw of almost 12% since the beginning of 2011, due to instability in the Middle East, the Japanese earthquake and the nuclear crisis, were not sustainable," she said. | |
"The poor economic data released from the US and Europe has confirmed fears that the recent high commodity prices could affect global demand." |