A rally in major world stock markets lost some steam on Thursday despite a continued surge in bank shares, as investors reassessed positions, while U.S. bond yields continued to climb on the likelihood of inflation under President-elect Donald Trump's proposed fiscal policy.
As an add on for my miners and refiners, I do watch the price movement of ferrous metals, and yes, as of late they have just tanked downward with iron leading the pack at -16%, steel (-6%), aluminum (-7%), copper (-9%) and nickel (-8%), with all of these markets just cratering to new lows and with record breaking downward action in some cases, resembling more of an anvil dropping off a cliff, rather than the normal day to day trading action. In some areas, such as rolled sheet steel, it was limit down last week, which ended up being 6% of the entire base price of rolled steel.
Other commodities coming lower now. Copper (Futures, July) shown below in the daily chart has had some ‘high wave’ sessions (large movements outside the ‘open/close’ body) with small difference between open and close levels. This is indecisive on daily and is not supportive of the bullish advance.