CAPITAL MARKETS

Markets quiet due to Independence Day

Metals mixed, ASX futures down

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The British market was flat, Toronto closed 0.3% higher and Australian futures were down 12 points.

Oil rose by 1.1% to US$70.64 a barrel, while gold traded higher at $1933 an ounce.

Base metals were mixed, with nickel, tin and copper down and zinc rising by 2%.

The MySteel 62% Australian iron ore fines price dropped 1.3% to $110.50 per tonne.

UBS noted that consensus for metals and mining in the near-term was bearish.

"In contrast to early 2023, we conclude investors do not expect a turnaround in the China property/construction sector and an ‘L' shaped recovery is consensus," the bank said.

"More stimulus looks likely after expected weaker economic data in 2Q, but confidence in a sustainable recovery appears low, with HFs likely to sell on ‘stimulus headline' rallies."

Updated: 05-07-2023

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