MEIR ON METALS: Markets remain firm as investors remain comfortable with 'risk-on' trades

Analyst Ed Meir looks at what is moving the metals markets on Wednesday February 29.

Copper and general commentary: Commodities ended mixed on Tuesday, with precious metals taking top honors in the day’s rankings. In base metals, copper finished at a two-week high, although it did fall back from earlier gains. However, aluminium and nickel both bucked the trend to finish lower. In other developments, central banks in both China and Europe are flooding their economies with easier money this week, albeit in varying amounts. On Tuesday, the China Securities Journal reported that the government will allow local banks to make new loans on unfinished investment projects in order so that they could get completed, but provided they are at least 60% complete already. Chinese authorities previously ordered banks to cut off new loans to local government projects, except for affordable housing, but this across-the-board about-face is noteworthy, and reflects growing concern about a slowing economy. One analyst summed it up nicely, saying that given...

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Ed Meir

February 29, 2012

15:04 GMT