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Materials Rise on Weaker Dollar – Materials Summary

Producers of metals and other commodities rose after a dovish inflation report weighed on the US dollar.

The dollar slipped to its lowest level in five months against a basket of other currencies as traders bet the Federal Reserve would cut interest rate hikes in response to a sixth straight decline in consumer price inflation in December.

Fed fund futures markets are pricing in a 25 basis point rate hike on Feb. 1 after four 75 basis point hikes and one 50 basis point hike in recent sessions.

China effectively ended a ban on Australian coal that has been at the center of more than two years of diplomatic rows, in the latest sign Beijing is taking a less confrontational approach to foreign policy as the economy struggles.

Write to Rob Curran at [email protected]

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