CAPITAL MARKETS

Commodities weak across the board

GOLD fell back below US$1800 an ounce overnight as US earnings drove stock market gains.

Commodities weak across the board

The S&P 500 rose 0.2% to a new record of 4574.79 points amid a big day for company profit-reporting.

Gold pulled back to $1793.40 an ounce.

Silver, platinum and palladium each dropped by more than 2%.

Base metals were also weaker.

Aluminium, copper and nickel all lost more than 1%.

The MySteel 62% Australian iron ore fines price dipped below $120 per tonne.

A survey by UBS Evidence Lab suggested a slowdown in the Chinese property market with only 11% of 3313 respondents planning to buy a property in the next two years, the lowest on record and compared to 21% in August 2020 and 30% in September 2019.

"Income, mortgage financing, down payment requirement and housing price remain top factors affecting market sentiment," UBS said.

"Respondents reported recent tightening of mortgage policies, with higher mortgage rates and more difficult approvals. Surprisingly, more respondents than in the August 2020 survey expected property price to increase (46% vs 31% in 2020), which suggests that weaker buying intention may be partly due to recent property policy tightening."

The Australian dollar was trading at 74.99c.

Updated: 27-10-2021

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