Commodities: base metals find support in China - ANZ

Analysts at ANZ explained that commodities reversed falls earlier in the week.

Key Quotes:

"The hope of further stimulus measures in the EU saw investors pile into metal markets in particular. Base metals were also supported by data showing strong imports into China. Nickel, copper, and zinc imports in June all remained at elevated levels despite a slight fall from May."

"Nickel led the gains as further comments from the Philippine government about possible disruptions to exports supported prices. Stronger steel prices in China saw steel mills re-enter the iron ore market. Further signs of slowing growth in supply also buoyed sentiment. BHP announced that its output will increase by only 3% over the next 12 months."

"A lull in the equity market rally, a slightly weaker USD, and more easing in monetary policies saw gold regain some of its lustre. Oil prices bucked the trend seen in the rest of the sector as concerns over growing gasoline inventories and weak demand dented investor sentiment."