Trade talks remain the key to investor sentiment

There were few big moves in commodity prices this week despite some encouraging data out of China and the US, and a 25bp cut in the Fed Funds rate. Admittedly, the economic data were not uniformly positive, but should still have assuaged some concerns about the outlook for global growth. Instead, prices continue to be pushed and pulled by developments in the US-China trade dispute. Looking ahead, any news about the ongoing negotiations between the US and China on trade will be a major driver of prices. It will be fairly quiet on the data front next week. China is set to publish its October trade data on Friday. In a positive development for prices, commodity import volumes may have picked up a little as the Caixin PMI for last month pointed to a revival in manufacturing activity.