Daily Market Blog: Do the commodity bounce
"It was with great relief that the collective rallied as much as 6.1 percent, some heavyweights such as Kumba Iron Ore added 7.9 percent on the day (the last 12 months the stock is still down nearly 23 percent), whilst the heavyweight diversified companies, such as Glencore (up 3.68 percent), Anglo American (up 6.57 percent) and BHP Billiton (up 6.19 percent) helped the market higher. Industrials and financials unperformed the broader market, still managing a more than two and half percent gain.
So what now? Is this the recovery in commodities prices that many are looking for? Perhaps in the short term. When I read headlines that US imports from OPEC producing companies are at a thirty year low as a result of the shale revolution in North America, I am pleased for Joe consumer"
To market, to market to buy a fat pig. Wow. I am not too sure that I have seen a day as big as that, in the direction of the bulls (sell offs are always worse than rallies), in the end the overall market gained 1583 points to close up near 51 thousand points, a gain of 3.2 percent on the day. What happened, global peace? No. Out of the blue and unexpected, just around lunchtime here Friday, the People's Bank of China (PBOC) cut interest rates, the first such move in 2 years. This obviously indicates a willingness to encourage business to borrow more against the backdrop of a rate of growth that is slowing in China. There is lots of room to manoeuvre for a bank of its size that very little if ever is talked about. People speak about the ECB and Fed until the subject has been beaten to death with a long, long stick, it is rare for the PBOC to be brought up, unless of course there is action on this sort of scale.