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Commodities, miners lower

Sinking commodity prices have weighed on miners and the gold price has dropped as the US Federal Reserve kept interest rates unchanged but indicated low inflation was temporary.
Commodities, miners lower Commodities, miners lower Commodities, miners lower Commodities, miners lower Commodities, miners lower

Kidman Resources’ Earl Grey lithium project in Western Australia

Staff reporter

However lithium junior Kidman Resources (ASX: KDR) was a standout, up 44% at the time of writing, in the wake of Australian conglomerate Wesfarmers' proposed takeover bid.

Gold was worth about US$1,274 an ounce on the spot market earlier, around $6/oz lower than this point yesterday.

Meanwhile base metals sank on the London Metal Exchange yesterday, reacting to disappointing US manufacturing data.

"First day of the month sees a sea of red with lead, copper and zinc the hardest hit," Marex Spectron's Dee Perera on the LME desk said.

In New York, the S&P 500 ended its record-breaking streak, closing lower.

Its metals and mining stocks all finished lower, with Freeport-McMoRan's (NYSE: FCX) dropping 4.87%.

It had missed earnings expectations last week as it starts transitioning from openpit to large-scale underground mining at its Grasberg joint venture in Indonesia.

Canadian diversified miner Teck Resources (TSX: TECK.B) closed down a similar amount, 4.99%, in Toronto.

Metals and mining stocks were off 1% in afternoon Australian trade.

US market futures were pointing to an upbeat start today but Toronto and European indices looked set for a lower opening.

Most European markets were closed for May Day yesterday while Asian markets are closed for much of this week for various holidays.