Uncertain macro environment incites bloodshed in commodities: Angel Broking

Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):

"The commodities market was in for carnage this week, after a series of persistent geopolitical tensions and weak Chinese manufacturing numbers. Base metals space, which until now was showing a brave face, witnessed a sharp negative momentum in the week ending May 5th, 2017.

Moreover, Run-up to the second round of the French Presidential elections (7th May'17) coupled with hawkish tone of the Fed members in the May meeting kept investors away from risky assets. Apart from this, standalone fundamentals in Copper and Nickel worsened their slide further. Copper plunged to five month lows this week following a whopping 37 percent surge in LME inventories and doubled on warrant stocks. On the other hand, Nickel became the worst performer this week falling to 10-month low of $8905/t, following news that Philippines' parliament rejected the appointment of stern environment minister Regina Lopez, thereby easing supply concerns from the world's largest producer of the metal."

Source : Equity Bulls

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