Market Update – 12th May 2016 – Aussie Flat Despite Strong Gains Across Commodities

  

Iron ore prices gained half a percent overnight adding a second successive positive session and putting iron ore bears on notice that it’s not a one-way street lower for iron ore prices since hitting highs just above US$70 a tonne in April. It’s now starting to look like a bit of support is building for iron ore prices around US$54 a tonne, but the next few weeks will tell us if this remains true.

The only data delivered last night was UK manufacturing production which failed to meet expectations falling well short of the 0.4% economists had tipped instead coming in at a measly 0.1%. The figures not great, but its also not surprising for an economy that’s battling to say the least.

Overall last night commodities were the big winners, with oil, gas, copper and iron ore all posting solid gains, while equities battled.

DATA RELEASES TODAY:

GBP – Bank of England Cash Rate Decision at 9.00pm

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