The London Metal Exchange closed before the FOMC announcement, but copper joined the commodities rally in the US. US copper for December delivery was recently up nine cents or 3% at US$3.32 a pound. Earlier in London, copper gained 1.75%, lead 2.2%, nickel 1.05% and tin 2.8%. Aluminium eased 1.5% and zinc 0.5%.
Most European markets moved higher ahead of the Fed decision. Germany's DAX gained 0.45% and France's CAC added 0.59%. Britain's FTSE dropped 0.17%.
Spot iron ore for delivery to China yesterday bounced 60 cents to US$131.70 per dry metric tonne.
TRADING THEMES TODAY
BULL RUN:The ASX will start the day wearing rocket boots manufactured by the US Federal Reserve. A new five-year high will come early and easy as dividend stocks benefit from the unexpected extension to the era of easy money and miners get a leg-up from substantial gains in commodities. The problem for short-term traders is the gains will be mostly baked into the opening prices - great for holders, dangerous for buyers. Over-enthusiasm at the open can be costly as many prices see their highs in the first few minutes. It's also possible that Wall Street will take a more sober view of the Fed decision once the initial thrill wears off. Should stocks be at record highs if the Fed doesn't think the economy is strong enough to stand on its own? But that's tomorrow's problem - today we rally.
DML Price at posting:
11.5¢ Sentiment: LT Buy Disclosure: Held
