While China faced new pressures after Donald Trump won the US elections, it announced a debt package of USD 1,40 trillion on Friday to alleviate the financial crises of the administrations in the country and support economic growth. However, this debt package could not prevent the decline in the futures stock market as it did not cover the expected incentives.
Market participants expected that China would announce additional stimulus packages in order to prevent tensions and trade barriers between the US and China.
In addition, consumer prices in China recorded the slowest increase in the last four months in October and producer price deflation deepened.
On the Dalian Commodity Exchange (DCE), the most-traded January iron ore contract DCIOcv1 decreased by 2.87% to settle at USD 106.10. Coke DJMcv1 and cokeDCJcv1 decreased by 2.98% and 4.61%, respectively.
On the Singapore Exchange, the December iron ore SZZFQ4 index decreased by 1.91% to USD 100.6
Prices were generally lower on the Shanghai Futures Exchange, with rebar SRBcv1 decreasing 2.35%, hot rolled coil SHHCcv1 decreasing 1.9%, wire rod SWRcv1 decreasing 2.95% and stainless steel SHSScv1 decreasing 1.6%.
Market participants are following the Politburo meeting and the Central Economic Work Conference to be held in December. More pro-consumption counter-cyclical measures are expected to be announced at the meeting.
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