Materials Down as Fed Hopes Fade -- Materials Roundup

Producers of metals and other raw materials fell as hopes that the Federal Reserve would moderate its rate policy faded.

Those hopes surfaced last week following reports that hinted at an ailing economy.

"After multiple disappointing pieces of news on the inflation front in recent weeks - in particular, services prices and consumer expectations - we think that the chances of an early curtailment of the Fed's tightening campaign looks slim," said strategists at brokerage BNP Paribas, in a note to clients.

"As a recession next year will not be a major surprise to many, what will matter for macro markets instead is the depth. This, we think, will largely depend on the persistence of inflation as it will drive both the magnitude and duration of the Fed's restrictive policy regime."

South32 warned it will likely produce less metallurgical coal from an Australian mining operation than previously forecast this fiscal year, but that its manganese output is tracking ahead of production guidance after a strong first quarter.

Shares of miner African Pioneer rallied after its joint-venture partner in Zambia found promising copper deposits.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

10-24-22 1652ET