Producers of metals and other raw materials fell as strong economic data sparked fears of renewed aggression in the Federal Reserve's fight against inflation.
Analysts said the market thesis that the Fed was set to downshift its rate hikes to 50 basis points in December and continue at that more moderate pace would be in jeopardy if inflationary economic data like Monday's services-sector report continued to appear. Any sign of an overheating economy could inspire a return to 75-basis-point increases.
Anglo-Australian mining giant Rio Tinto expects iron-ore shipments from its Australian mines to be steady year over year in 2023, and for aluminum output to rise.
Storm season in Brazil and Australia could lift iron-ore prices, said analysts at brokerage Jefferies, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-05-22 1644ET
