After a quiet start to 2016, commodity markets have sprung into life. Late in the week, comments by OPEC members that they would deepen output cuts and possibly extend them until the end of 2017 reversed earlier falls in the oil price. In contrast, nickel fell back as Indonesia partially lifted its ban on ore exports. Meanwhile, China’s trade data showed that China’s appetite for commodities remained strong in December. Looking ahead, Donald Trump will be inaugurated as the 45th US president next Friday, but he is unlikely to provide much detail on his policy plans in his inaugural speech. Earlier in the week, China’s December activity and fixed investment data are likely to be the focus of commodity markets. We expect industrial production to have remained strong, but fixed investment may have weakened due to the cooling property sector. Meanwhile Friday’s Q4 GDP number for China is likely to confirm the pick-up in activity in late 2016.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services