Commodity Catch-up with Madhavi Mehta | 11th July 2022

Highlights of the commodity podcast:-Commodities ended lower as firmer US dollar and growth worries offset China’s stimulus expectations.-Industrial metals and crude oil ended well off the lows on China’s stimulus expectations; gold hovered near 9-month low.-The US dollar index rose to a fresh 2002 high on safe haven buying and Fed’s tightening outlook.-US DJIA index ended higher for a second time in three weeks; Chinese equities fell for the first time in six weeks.-US non-farm payrolls rose by 372K in June as against forecast of 268K growth; unemployment rate was steady at 3.6%.-FOMC minutes show that Fed is likely to keep raising interest rates for longer to prevent higher inflation from becoming entrenched.-Governor Christopher Waller and St. Louis Fed President James Bullard backed the need for restrictive policy to curb price pressures but argued the US can still avert a contraction.-Most ECB officials want to raise interest rate by 0.25% in July but some said central bank should not make an unconditional commitment.-China’s Ministry of Finance is considering allowing local governments to sell $220 billion of special bonds in the second half to accelerate infrastructure spending.-Beijing said people eligible for COVID-19 vaccinations will have to take the shot before they enter crowded venues.-Former Japanese Prime Minister Shinzo Abe was assassinated at a campaigning event in Japan.-Key events in the coming week include US inflation data and China’s GDP, industrial production and retail sales.