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Commodities: Oil, copper gain on China stimulus

By Alexander Bueso

Date: Tuesday 15 Jan 2019

Commodities: Oil, copper gain on China stimulus

(Sharecast News) - Energy futures snapped higher in late trading as the Greenback cut its earlier advance following news of a landslide rejection of the British Prime Minister's Brexit proposal.
As of 2130 GMT, the US dollar spot index was up by 0.38% at 95.9690 having pared an earlier gain to 96.2610, while the Bloomberg commodity index was up by 0.25% to 80.10.

In parallel, front month Brent oil futures were climbing 2.81% to $60.65 a barrel on the ICE, alongside an advance of 3.53% to $1.4120 a gallon for February dated RBOB gasoline.

Similarly-dated natural gas futures on the other hand were down by 4.15% to $3.44/MMBtu.

Helping to buttress sentiment, overnight Chinese authorities announced that tax cuts "on a larger scale" were in the policy pipeline. The news came amid data showing more stable credit conditions, although some analysts called attention to the still weak money supply growth dynamics as measured by M1.

As well, the country's premier, Liu He, reportedly accepted an invitation to the next phase of talks in Washington DC.

Against that backdrop, most LME-traded base metals futures managed to eke out small gains.

February gold futures on COMEX on other hand was soft, drifting 0.17% lower to $1,289.10/oz..

Soft commodities were also on the backfoot, with March corn on CBoT off by 1.92% to $3.7125 a bushel and ICE-traded cocoa slipping 2.86% to $2,274.0 per metric tonne.





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