Financial Times FT.com

Commodity markets uninspired by China spending plans

By Chris Flood

Published: March 5 2009 12:27 | Last updated: March 6 2009 12:06

Oil prices fell and base metals were mixed as traders reacted with caution to the lack of concrete spending pledges in the new economic stimulus plans announced by China on Thursday.

“The main goal of the Chinese government announcement is to inject some confidence into markets”, said Yingxi Yu of Barclays Capital: “The comments will have a far greater impact on sentiment than on consumption, certainly for the next few months.”

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