LIVE FUTURES REPORT 16/06:US Fed drives risk-on bull rally across LME base metals

June 17, 2020 / www.metalbulletin.com / Article Link

The unveiling of the US Federal Reserve's corporate bond purchase program late in the European trading day on Monday June 15 revived investor confidence in commodities on Tuesday, boosting LME three-month base metals prices.

Donald Trump's administration is currently considering a potential infrastructure bill valued at nearly $1 trillion, fueling risk-on sentiment across the LME base metals complex and boosting optimism for forward industrial metals' demand. Some analysts attribute this latest spate of bullishness across LME base metals to the rising equities markets they have been following for some time, with the Dow Jones index rising 500 points in the wake of the announcement."Global equities markets were being pummeled over concerns about a second wave of infections, then the US Fed came out and said [it was] going to start buying corporate bonds. This is tantamount to...

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