Metal prices rise following Saddam Hussein's capture

摘要

The capture of the former Iraqi dictator has had a positive effect on metal markets. It has pushed oil prices down and LME prices up. But confidence in the oil market may not be maintained for long and metal prices could dip again. It is well established that there is no accounting for taste. Sometimes it is just as difficult to account for movements in the markets. The capture of Iraq's former dictator Saddam Hussein dominated the headlines in the past week, and allowed the Americans to claim that they were making progress in their aim of bringing order to that country. It persuaded the oil market to mark down the price of crude (which may be some justification for higher metal prices). but it was difficult to see the rest of the reasoning.