There was heavy selling in metal stocks in the stock market on Friday. There was some gloom in the market due to the US Federal Reserve’s easing of the asset buying program and fears of slowing growth. Its major impact was seen on the stocks of the metal sector. Minutes of the Federal Reserve’s meeting in July revealed that it is planning to reduce monthly asset purchases.
This purchase from the Federal Reserve can be cut before the end of the year.
Meghmani Organics stock again in upper circuit for the second consecutive day after listing
However, at the same time the Federal Reserve has made it clear that there is no plan to increase the rate any time soon. This will be waited for next year.
After this information came out, there was disappointment in the stock and commodity markets around the world. There was heavy selling in the stocks in European and Asian markets. The sentiment of traders also showed weak in Wall Street, due to which the market fell significantly.
Experts believe that commodities are no longer safe for investment. There are indications that the commodity market has hit a higher level and should now come down, he added. The dollar continues to strengthen and this has increased the pressure on commodities.
Steel prices are coming down due to anticipated decline in demand from China. The Chinese government is increasing restrictions on the property market, which has increased prices. China has asked its steel mills to reduce production so that pollution can be controlled. Some big steel companies are cutting supplies.
Copper prices also fell to four-month low on Thursday.
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