Commodities were in profit-taking mode
Commodities were in profit-taking mode, and nothing suggested a wider government crackdown that might seize up broader markets, senior analysts at established trading houses said. Traders hadn’t received any notices from wire duct derivatives regulators indicating an investigation.
More importantly, equity and equity futures markets weren’t doing anything out of the ordinary, keeping well within expectations cable duct of a profit-taking mode after three days of gains.
By late morning, an executive at the Shanghai bourse told Dow Jones Newswires there wasn’t an investigation. The China Securities Regulatory Commission, which governs bourses, wasn’t looking into Shanghai natural rubber futures, and hadn’t told the exchange to do cable trunking so, the executive said. The exchange itself didn’t issue an official statement.
The rumor mill slowed. Commodity markets stabilized.
By late afternoon, the brokerage alleged to be at the center of the investigation, Dadi Futures, issued a statement on its website (in Chinese) saying “everything is normal,” and that it hasn’t received any notification from regulators on a probe.
By then, rubber had already recovered enough to settle just 2.7% down, clawing back a morning of heavy losses, back from the brink of a bloodbath.
