Commodities stronger across the board - ANZ

Analysts at ANZ noted that commodities were stronger across the board.

Key Quotes:

"Oil closed the day stronger after EIA data showed inventories in the US fell 3.23 million barrels to 532.5 million barrels. This was tempered by an increase in crude production of 10kb/d to 8.75mb/d and the number of active rigs increasing by 9 to 325. Industrial metals were strong as the dollar weakened and trade data from China showed strong import demand.

Ongoing central bank stimulus also boosted sentiment in the gold market, with prices hitting a three week high. This goes on the back of ongoing support from US monetary policy, with the market now pricing in a zero chance of a rate hike at the FOMC meeting next week. Bulk commodities were relatively unchanged. The strong increase in China’s iron ore imports in May (+22%y/y to 86.75mt) failed to excite participants."