The situation on commodity market is gradually getting better. Crude oil prices showed an increase despite the obvious signs of economic slowdown in China and Japan. Contracts for the delivery of crude oil gained over 3%, therefore the sellers were able to make for the previous losses. There was also an upturn in other commodities. For example, copper grew by 4% at a time. The copper price reached the 50-day moving average and break above this level would bring the price even higher. There are several reasons for that, such as the latest statement of one of the major company in this sector, Glencore, about the upcoming large-scale decline in production. Glencore will close down two their mines in Africa for 18 months within an extensive restructuring program. The experts at SP Angel Corporate Finance say that only this measure will cut the global copper output by 2.2%.
The strengthening of the Chilean peso gave an additional uptick in growth as Chile is a leading global exporter of copper. The analysts are watching the situation in Asia closely, but as for now they keep on getting the disappointing data, especially on China, as the country undergoes a major economic slowdown.
