Materials Up After Wholesale Inflation Data — Materials Roundup
Producers of metals and other raw materials rose after muted wholesale inflation.
The producer-price index rose 0.2% last month, in line with economists' forecasts, and continuing a trend of manageable price increases. Investors banked on the Federal Reserve cutting rates by a quarter of a percentage point, in light of the inflation data and recent mixed growth estimates.
New weekly unemployment claims rose 2,000 to 230,000, remaining relatively low by historical averages. Gold futures hit all-time highs close to $2600 an ounce after the data and a European Central Bank rate reduction set the stage for the Fed to follow suit next week.
The price of iron ore has dropped to its lowest in nearly two years, down by as much as 36% for the year to date, weighing on profits for mining giants such as BHP Group, Rio Tinto and Vale, as they raise bets on commodities like copper associated with the energy transition.
Shares of uranium producers rose after Russian President Vladimir Putin said Moscow should consider restricting exports of the nuclear fuel.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
September 12, 2024 17:51 ET (21:51 GMT)
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