Commodities had a turbulent time as negative developments in Europe, including a credit rating downgrade for Spain, spurred choppy price action.
In the online CFDs market, copper saw the biggest swings. It rallied strongly from a 7 percent dip triggered by worries that European leaders will be unable to find common ground at the upcoming summit. Coffee also jumped about 6 percent, the most in 16 months, helped by concerns about heavy rains in Central America that dwindled certified supplies of coffee beans. Lack of producer selling also supported prices.
US natural gas futures, which you can speculate on with GFT, ended slightly lower in recent trading activity after two straight gains, as concerns about growing supplies continued to weigh on sentiment despite prospects for more heating demand.
The US Energy Information Administration figures showed total domestic gas inventories rose by 103 billion cubic feet to 3.624 trillion cubic feet.
Traders and day trading analysts had expected a 110 bcf build. While the build was below market estimates and drove prices higher, probably on short covering, some traders viewed it as bearish, noting it was well above the year-ago gain of 93 bcf and the five-year average increase for that week of 58 bcf.
The inventory shortfall relative to last year has narrowed sharply from its June peak of 275 bcf, and most traders expect the gap to shrink further in coming weeks as moderate weather opens the door to above-average builds. With about three weeks left in the stock building season, storage looks set to peak this year between 3.75 tcf and 3.80 tcf, just below last year’s record high of 3.84 tcf.
Most traders see only limited upside until colder weather stirs more heating demand, with a sluggish economy, comfortable inventories and high gas production likely to keep the market oversupplied
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