Steel prices decline as Chinese inventories build up
Steel prices fell on Monday in American trade as the dollar rose against most major rivals, while steel inventories increased in China.
Latest official data showed China’s steel inventories up 3.48% by the middle of this month, marking three-month highs.
However, steel inventories are still 1.1% lower compared to the same period last year according to Bloomberg.
Daily steel production by major Chinese companies also fell 0.5% by mid-August to 1.99 million tonnes a day.
Non-steel metal inventories in China fell to 10.2 million tonnes by mid August.
Otherwise, the dollar index rose 0.1% as of 16:10 GMT to 100.7, with a session-high at 100.9, and a low at 100.5.
On trading, steel spot prices fell 0.3% in American trade to $670 a tonne.
Bitcoin backs off three-week high on profit-taking
- World’s most valuable cryptocurrency might test $60,000
- Strong outlook for fresh investments into crypto
Bitcoin fell on Monday away from three-week highs amid some profit-taking operations.
The correctional dip could send prices towards $60,000 once more, especially as US 10-year treasury yields rebounded.
Recent remarks by Fed Chair Jerome Powell opened the door strongly for extensive US rate cuts before the year end, which could boost crypto investments later on.
Prices
Bitcoin fell 1.75% at Bitstamp today to $63,128, with a session-high at $64,502.
On Sunday, bitcoin rose 0.2%, the third profit in a row, marking three-week highs at $65,103.
Bitcoin rallied 10% last week, the largest weekly profit since mid-July.
Crypto Market Value
The market value of cryptocurrencies fell by $25 billion on Monday to a total of $2.335 trillion as both bitcoin and ethereum sustained losses.
US Yields
US 10-year treasury yields fell 0.7% today to near multi-week lows, in turn pressuring the greenback.
The latest decline came after Powell’s speech in Jackson Hall last Friday, at which he confirmed the imminent start of a new cycle of monetary easing.
Powell
At Jackson Hall, Fed Chair Jerome Powell sent out clear signals about the approach of rate cuts, but refused to pin a specific date.
Powell said in his annual Jackson Hall speech that it’s time to modify policies, with the direction clear. He added that the timing of the next rate cut will depend on data and developing outlook.
He pointed to noticeable progress in containing inflation, and added that the Fed can now shift to the other half of its double mission, which is to maintain an economy with full employment.
US Rates
Following Powell’s speech, the odds of a 0.5% Fed rate cut in September rose from 25% to 38%, and the odds of a 0.25% cut fell to 62%.
The markets are expecting 100 basis points of interest rate cuts by the Fed this year.
Dollar plumbs 13-month nadir after Powell's remarks
The dollar lost ground in European trade on Monday against a basket of major rivals, sharpening losses for another session and plumbing 13-month lows, after Fed Chair Jerome Powell’s speech at Jackson Hall.
Powell’s somewhat bearish remarks confirmed the imminent start of the US monetary easing cycle, with multiple Fed rate cuts expected this year.
The Price
The dollar index fell 0.15% today to 100.53, the lowest since July 2023, with a session-high at 100.75.
The index closed down 0.85% on Friday, the fifth loss in six days.
The index also lost 1.7% last week, the fifth weekly loss in a row, and the largest since November 2023.
US Yields
US 10-year treasury yields fell 0.7% today to near multi-week lows, in turn pressuring the greenback.
The latest decline came after Powell’s speech in Jackson Hall last Friday, at which he confirmed the imminent start of a new cycle of monetary easing.
Powell
At Jackson Hall, Fed Chair Jerome Powell sent out clear signals about the approach of rate cuts, but refused to pin a specific date.
Powell said in his annual Jackson Hall speech that it’s time to modify policies, with the direction clear. He added that the timing of the next rate cut will depend on data and developing outlook.
He pointed to noticeable progress in containing inflation, and added that the Fed can now shift to the other half of its double mission, which is to maintain an economy with full employment.
US Rates
Following Powell’s speech, the odds of a 0.5% Fed rate cut in September rose from 25% to 38%, and the odds of a 0.25% cut fell to 62%.
The markets are expecting 100 basis points of interest rate cuts by the Fed this year.
Gold hovers near record highs after Powell's remarks
- US Yields weakness underpins gold
- Increasing chances of deep US rate cuts
Gold prices rose in European trade on Monday on track for the second profit in a row, and almost touching record highs as US 10-year treasury yields weakened.
Federal Reserve Chair Jerome Powell’s speech in Jackson Hall last week was less optimistic than expected, boosting the odds of multiple Fed rate cuts this year.
The Price
Gold prices rose 0.5% today to $2525 an ounce, with a session-low at $2508.
On Friday, gold prices rose 1.15%, resuming gains and approaching a record high at $2531.
The precious metal rose 0.25% last week, the second weekly profit in a row as both the dollar and US yields lost ground.
US Yields
US 10-year treasury yields fell 0.7% on track for the second loss in a row, while about to mark multi-week lows, in turn boosting non-yielding assets such as gold.
The latest decline came after Powell’s speech in Jackson Hall last Friday, at which he confirmed the imminent start of a new cycle of monetary easing.
Powell
At Jackson Hall, Fed Chair Jerome Powell sent out clear signals about the approach of rate cuts, but refused to pin a specific date.
Powell said in his annual Jackson Hall speech that it’s time to modify policies, with the direction clear. He added that the timing of the next rate cut will depend on data and developing outlook.
He pointed to noticeable progress in containing inflation, and added that the Fed can now shift to the other half of its double mission, which is to maintain an economy with full employment.
US Rates
Following Powell’s speech, the odds of a 0.5% Fed rate cut in September rose from 25% to 38%, and the odds of a 0.25% cut fell to 62%.
The markets are expecting 100 basis points of interest rate cuts by the Fed this year.
The SPDR
Gold holdings at the SPDR Gold Trust fell by 1.73 tonnes on Friday to a total of 856.12 tonnes, the lowest since August 16.