Commodities, and base metal, in particular, closed last week on a strong note, shrugging off China’s weaker-than-expected PMI reading. A softer U.S. Dollar provided support, as did dovish commentary from the Fed’s Jackson Hole meeting.
In a virtual speech to the Fed’s annual Jackson Hole symposium in Kansas City, Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year but will not be in a hurry to begin raising interest rates thereafter.
According to the Fed, the U.S. economy has now met the test of “substantial further progress” toward the Fed’s inflation objective, which would be a precondition for tapering the bond-buying. At the same time, the labor market has also made “clear progress.”
According to Standard Chartered strategists, market concerns over imminent tapering appear to have eased, with traders now…