China is set to release its industrial production numbers today (15 November), which ANZ says will set the tone for commodity markets.
Copper, in particular, remained under pressure on expectations of a weaker outlook for China.
ANZ analysts say any gains will be reliant on Beijing providing additional stimulus measures.
“Eagle Metal International, a major importer of copper in China, warned that copper demand is likely to remain weak unless more economic support is provided,” the analysts say.
However, supply remains tight. ANZ says Chinese importers are reducing the amount of copper ore purchased under annual contracts as treatment charges fall amid ongoing shortages.
Meanwhile, US markets fell overnight on lower jobless claims data, which ANZ says suggests there is no need for urgent rate cuts. However, the Australian Securities Exchange (ASX) edged higher in early trade today.
The S&P/ASX 200 rose 18.30 points, or 0.22%, to 8,242.30 points at 10:34am AEDT, crossing above its 20-day moving average. The index has lost 0.64% for the last five days, and sits 1.70% below its 52-week high.
Ten of the 11 sectors were higher, with utilities the best performing sector, gaining 0.43% so far today and 1.45% over the past five days.
Materials rose 0.20%, industrials climbed 0.19% and energy was up 0.09%.
Mining services and gold miners led the index. Mining explosives supplier Orica (ASX:ORI) advanced 4.98% to $18.46 while on the gold front Capricorn Metals (ASX:CMM) climbed 4.71% to $6.23, Vault Minerals (ASX:VAU) shifted up 3.97% to $0.33 and West African Resources (ASX:WAF) rose 3.62% to $1.43.
Mineral Resources (ASX:MIN), meanwhile, slid 1.73% to $34.70.
Investors seemed less cautious, with the S&P/ASX 200 Volatility Index (A-VIX) back in positive territory, gaining 0.11 points, or 1.01%, to 10.82 points. The index has lost 3.21% over the past five days and 9.13% over the last 52 weeks.
Also known as the ‘fear’ index, the A-VIX is a real-time volatility index that provides an insight into investor sentiment and expected levels of market volatility.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
