Most commodity prices took a bit of a hit this morning as China raised its short-term interest rate, in a clear sign that supporting growth is no longer the primary immediate goal of policymakers. Indeed, the manufacturing PMIs for January dipped, suggesting that the economy is already starting to lose steam. In other news, the strong gain in US non-farm payrolls, also released today, was accompanied by data showing subdued wage growth. This strengthens our view that the next rate hike may not be until June.
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