COMMODITY PRICE FEARS
Weaker rand fails to prop up resources
Resources and platinum stocks sharply lower despite a weaker rand
Resources and platinum stocks on the JSE were sharply lower on Thursday despite a weaker rand as concern grew that commodity prices were at unsustainably high levels. A weaker rand usually supports miners that export raw commodities because the dollar earnings increase, but emerging markets were generally weaker on the day ahead of US nonfarm payroll data on Friday. The platinum index fell 2.66% and resources 2.07%. Commodity supplies have risen since the beginning of 2016 as concern about waning Chinese growth subsided. Oil and iron stockpiles have grown, but prices remain relatively high. Iron-ore prices have nearly doubled from levels below $50 per tonne in 2016. Copper, zinc and aluminium prices have also seen sharp increases.
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