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China’s PMI & Fed Statement Boost Oil & Copper

August 1, 2013 at 5:15 by Vladimir Vyun

Crude oil and copper rallied today as China’s manufacturing unexpectedly expanded last month. China Manufacturing Purchasing Managers’ Index rose from 51.1 in June to 51.3 in July, while it was expected to drop to 49.8. A reading above 50.0 indicated expansion of the sector, below indicates contraction.

The Federal Reserve hinted that it is going to keep monetary stimulus for a long time, adding to the strength of commodities. The Fed said after leaving its monetary policy unchanged:

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.

September futures for delivery of WTI crude oil rallied $0.57 (0.54 percent) to $105.6 per barrel as of 5:11 GMT on NYMEX today. Contract for copper advanced $0.009 (0.29 percent) to $3.1275 per pound on COMEX.

If you have any questions and comments on the commodities today, use the form below to reply.

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