Chinese commodity futures have jumped out of the blocks on Monday morning, gapping higher as soon as markets opened.
Just have a look at the scale of the gains seen in base and bulk commodities in less than ten minutes of trade.
- SHFE Copper ¥48,470 , 2.41%
- SHFE Aluminium ¥13,560 , 1.27%
- SHFE Zinc ¥22,980 , 1.84%
- SHFE Nickel ¥97,800 , 3.62%
- SHFE Rebar ¥3,499 , 5.23%
- DCE Iron Ore ¥648.50 , 5.53%
- DCE Coking Coal ¥1,305.50 , 2.31%
- DCE Coke ¥1,810.00 , 2.70%
The surge in buying activity has coincided with an article in the China Securities Journal stating that China’s State Information Center, an official think tank affiliated with the National Development and Reform Commission, believes policymakers should target economic growth of 6.5% in 2017.
Whether that’s the reason behind the move, or other factors such as further yuan weakness or renewed speculator activity, remains unclear at this point.
Regardless, investors are seemingly buying first and asking questions later in early trade on Monday.