The prospect of rising demand pushed prices higher in commodity markets on Tuesday. The reason for the optimism was the recent easing of strict corona quarantine regulations in China, which supported hopes that the severe strain on the Chinese economy will be eased somewhat, with positive consequences for the global economy. The price of a ton of the industrial metal copper, whose world’s largest customer is China, rose by one percent to $8,501. A barrel (159 liters) of Brent crude oil from the North Sea rose 1.9 percent to $117.23. Impending supply bottlenecks also had a price-driving effect. The two big oil-producing countries Saudi Arabia and the United Arab Emirates have apparently reached their maximum production capacity or are close to it, said analyst Tobin Gorey of the Commonwealth Bank. At the same time, experts warned of delivery failures due to unrest in Libya and Ecuador.
Nervousness grew on the bond market on the occasion of a central banker meeting in Sintra. Many investors sold government bonds. This drove the yield on ten-year German government bonds up to 1.673 percent. The day before, 1.572 percent had paid off. Council member Pierre Wunsch spoke out in favor of the European Central Bank generously helping the euro countries faced with sharply rising interest costs. “I would even say that there should be no limits,” Belgium’s central bank governor told Reuters. The ECB is currently working on an instrument intended to stem the rise in yields in heavily indebted countries like Italy.
The euro then lost value. The common currency fell to $1.0540, down half a cent from the previous day.