Copper fall hits European miners, dollar up on rates outlook

Wall Street was up on Monday along with a rebound in European stocks.

But US equity gains that had topped 1 percent earlier in the day were pared by a downturn in biotechs after U.S. Democratic presidential candidate Hillary Clinton said she would announce a plan to stop “price gouging” for specialty drugs.

The gains were, however, short-lived as the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased by 1.67 points to 1,637.8 at 9.21am, after opening 1.11 points better at 1,640.58, Bernama reported. In his first interview with foreign media since the skid began, Xi said that the government’s intervention in its stock market was necessary to “defuse systemic risks”.

“Generally markets are a bit more positive today although nothing that suggests confidence in the wake of decisions by the Federal Reserve not to hike rates last week”, said Michael Hewson at CMC markets in London. “Now, as soon as they see a down move they sell and sell hard”, he said, adding that Russell has reduced holdings of stocks in some of its multiasset funds in recent days.

The S&P/ASX 200 Index plunged 2.7% in Sydney, while the Hang Seng Index retreated 1% and Seoul’s Kospi gauge slid 1.5%. Yields fall as prices rise.

“The reason for the uncertainty is the Fed“.

And on Sunday Premier Li Keqiang called for reforms of inefficient state-owned enterprises as part of a drive to reassure investors about Beijing’s handling of a crisis gripping the world’s number two economy.

A pedestrian is reflected on a an electronic board showing the Japan’s Nikkei average (top) and other market indices including the exchange rate between the Japanese yen against the US dollar (bottom) at a brokerage in Tokyo, Japan, September 9, 2015.

In Europe, indexes were dragged down by heavy losses in mining stocks, with Glencore falling 14%.

“Until China demand and emerging-market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices”, Credit Suisse said in a note.

German carmaker Volkswagen, which has admitted cheating vehicle emissions tests, tumbled a further 5.7 percent as the investigation spread to Asia.

Health-care stocks also fell, tracking Monday’s losses for USA biotechnology shares after Hillary Clinton targeted specialty drug makers in a tweet.

The Australian market is trading near its lowest levels since 2013, the victim with other Asia-Pacific markets of that selloff in China last month. “To cope with the slowdown, some Asian central banks are likely to cut interest rates”, said Park, adding that China, India and Taiwan may ease monetary policies.

US crude futures CLc1 were up 0.5 percent at $44.92.

It declined against the Singapore dollar to 3.0331/0364 from 3.0289/0343 on Monday, traded lower against the yen at 3.5801/5850 from 3.5438/5511, and weakened against the pound sterling to 6.6463/6550 from 6.6218/6344.

USA benchmark West Texas Intermediate for delivery in October rose 83 cents to $45.51 a barrel compared with Friday’s close. Gold was up 0.2% at $1,134.50 a troy ounce.