Cyclical commodities unwound some previous gains on Friday as tensions around Spain mounted after Valencia requested for central government aid. The front-month contract on Brent (ICE) thus settled below 107 USD per barrel (USD/bbl) level.
Today in early trading, Brent extends previous losses. Mounting worries about the situation in the euro zone send the price of the front-month contract well below 104 USD/bbl.
Base metals prices fall further on Monday and LME copper is therefore again seen well below 7500 USD per ton (USD/t). The situation at LME remains, however, still relatively tight - cancelled warrants ratio remains above 20 percent. On the other hand, broad macroeconomic situation is not supportive and thus overshadows rather supportive microeconomic backdrop. Today in early morning, Spanish 10Y yield hit yet another euro-period high.