MXV-Index recovers, ending 5-session decline streak

Commodity market today, October 17: Sugar prices drop to the lowest level in nearly a month Commodity market today, October 18: Raw material commodity market experiences a 'fiery' trading week

Closing on October 21, the MXV-Index increased by 0.48% to 2,167 points, ending the previous 5 consecutive sessions of decline. Notably, the energy group led the increase of the whole market when all 5 commodities recorded impressive increases. Meanwhile, the industrial materials group went against the general trend with 7 out of 9 commodities simultaneously decreasing in price.

MXV-Index

Crude oil prices unexpectedly turned up

Crude oil prices rose across the board in the first trading session of the week after a series of sessions under strong selling pressure last week. The price increase was driven by China’s new economic stimulus measures and escalating tensions in the Middle East.

At the end of the session, WTI crude oil price for December delivery increased by 1.35 USD to 70.04 USD/barrel, ending a series of 6 consecutive sessions of decline. Similarly, Brent crude oil price for December delivery also recorded an increase of 1.68% to 74.29 USD/barrel.

Energy price list

On the morning of October 21, China cut its loan prime rate (LPR) as previously announced by the People's Bank of China to revive the slowing economy. Specifically, the 1-year LPR was reduced by 0.25% (from 3.35% to 3.1%). Meanwhile, the 5-year LPR (applied to long-term loans such as home loans and mortgages) was reduced to 3.6% from 3.85%. The move came after data showed that China's GDP in the third quarter grew by only 4.6%, lower than the country's target of 5% for the whole year. The loosening of monetary policy is expected to boost China's demand for crude oil for economic activities, thereby supporting oil prices.

In the Middle East, the market is reassessing the possibility of an escalating conflict between Iran and Israel. Over the weekend, Israeli Prime Minister Benjamin Netanyahu's residential area was attacked by a Hezbollah drone, but no casualties were reported. At the same time, Tel Aviv is also urging Washington to deploy new missile defense systems to Israel. This move is believed to be in preparation for Iran's possible response if Israel retaliates for Tehran's missile attack on October 1. These developments increase the risk that tensions in the Middle East could erupt into a full-blown conflict and disrupt crude oil supplies from the region. This information also helped crude oil prices reverse and recover yesterday's session.

Prices of some other goods