Commodities: Markets Disappointed As Fed Remains On Hold

Summary

• Brent rallied initially yesterday amid growing hopes of de-escalation in trade tensions between China and the US.
• However, the market came under pressure later in the day after the Fed kept interest rates unchanged. This boosted the USD, which added to headwinds facing the broader commodity markets.
• China expanded its gold reserves for a sixth straight month in April, rising by around 70,000 troy ounces (2 tonnes). Overall, central banks reported 17 tonnes of net buying in March.

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By Warren Patterson, Ewa Manthey

Energy - Choppy session for oil

It was a choppy session for the oil market yesterday. Initially, Brent rallied amid growing hopes of de-escalation in trade tensions between China and the US, with