As the market braces for a potentially weak jobs report, producers of metals and other raw materials are feeling the pressure. The outcome of the report could have a significant impact on rate-sensitive sectors like materials, as concerns of inflationary effects arise with any marked up-tick in jobs growth. On the other hand, a down-tick could ignite worries about the outlook for demand.
“It does seem to be a little bit of a ‘good news is bad news/bad news is bad news’ environment,” says JJ Kinahan, CEO of IG North America and President of its brokerage tastytrade. Despite this, there may be a glimmer of hope on the horizon as Kinahan adds, “That said, are we done with the sell everything mindset? You may actually get a little bit of a break on a Friday.”
In response to low water levels on the Mississippi River, analysts at brokerage TD Cowen predict a shift in grain shipments to rail and truck transportation. This adjustment is necessary to maintain efficient transportation of goods.
Additionally, commodities analysts suggest that gold futures could attract buyers once the Federal Reserve halts its interest rate hikes. This prediction highlights the potential for increased investment in gold as a result.