A raft of positive Chinese economic data this week offered some support to commodity prices, but concerns about the rise in coronavirus infections in the US and in Latin America prevented any significant gains. Oil prices dipped on news that OPEC will reduce its production cut in August, but this was widely expected given clear signs that demand is recovering from the lows earlier in the year.
Next week is relatively quiet on the data front, at least until Friday when Markit publishes the flash July PMIs for the US and the euro-zone. China will also publish its detailed July trade figures later in the week, which will give us some insight into whether China has been making an effort to increase its commodity purchases from the US. That said, virus-related news is likely to remain the key driver of market sentiment.
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