Material Prices Drop Because of Trade Talk Uncertainty
Commodity prices continued to fall for the eighth consecutive week, according to the IHS Markit Materials price index (MPI). The MPI dropped 1.2% overall, with eight of its 10 factors in decline. IHS Markit attributes this largely to concern caused by the U.S.-China trade talks. Energy prices decreased 1.2%, with a 3.3% decline in both natural gas prices and coal prices. IHS Markit reports that this drop puts coal prices at their lowest price point in three years. Chemical prices fell 0.5%, while some positivity among trade talks allowed for a small 0.6% increase in oil prices.