On Monday in the global financial market, there were Americans who celebrated Martin Luther King Day. As a result, there was no CRB and trade in many goods in the USA was not carried out. Investors were active on a small number of markets, including energy and metals markets. Both of them were dominated by bears.
High gas price volatility in the USA
At the beginning of this year, however, the discount slowed down, and after several session consolidation of gas listings reflected upwards. It was also a result of weather forecasts, this time announcing the arrival of cold winter in the US.
The largest discount was seen on the natural gas market yesterday – this raw material in the USA has sunk by 3.1%. The volatility of natural gas prices has been extremely high in recent months. The end of November and the entire December of last year were under the sign of a dynamic sale of natural gas due to relatively high air temperatures in the northeastern United States.
At the beginning of this year, however, the discount slowed down, and after several session consolidation of gas listings reflected upwards. It was also a result of weather forecasts, this time announcing the arrival of cold winter in the US. However, since last Thursday this increase has been systematically offset.
According to the CFTC (Commodity Futures Trading Commission), the natural gas market is dominated by short positions. Week Ended 13 January The number of short net positions increased by 70% And it was on the level 17513.
It was their closure after the cold winter announcements that probably caused such a dynamic movement of natural gas prices to the north (14 January the increase exceeded 11%).
Today, weather forecasts have again started to favor the supply side, as can be seen from the behaviour of natural gas prices. At least until the end of January, the most important factor affecting prices is likely to remain the weather, which will encourage nervous movements of gas prices.
Mixed data from China
Meanwhile, the figures on China's GDP for the fourth quarter in the raw materials markets are widely commented on this morning. They are important for the price development of many raw materials, as China is a key consumer of numerous raw materials and goods.
This applies especially to the copper market – the Central State is responsible for more than 40% global demand for this metal. Data on Chinese GDP were adopted by investors with mixed feelings.
At the outset, it is worth noting that they proved to be better than expectations – in the last quarter, GDP growth in China was at the level of 7.3%, While expected 7.2%. But for the whole 2014 data proved to be worse than expected – China's economic growth has been at the level of 7.4%.
This is a worse result than the one the Chinese authorities were aiming at (7.5%), And above all, it's the worst score from 24 years.
If so first The reaction to Chinese data was positive, so in a short period of time the quotes returned downwards and are currently oscillating around yesterday's minima.