Materials Down Ahead of Fed Meeting -- Materials Roundup

Features Dow Jones Newswires

Shares of mining companies and other commodities producers declined as traders bet a central-bank meeting later in the week would lead to volatility in foreign-exchange markets.

Continue Reading Below

Gold futures, which are particularly sensitive to movements in currency and rates markets, hit a two-week low in anticipation of a rate increase from the Federal Reserve later this week. One brokerage said the British pound sterling may not lose much more ground against the dollar despite Prime Minister Theresa May's desultory performance in the U.K. election.

"The risk of a negotiating accident (i.e. a hard Brexit without a transitional deal) has risen, but still seems to be, on balance, unlikely given the administrative requirements for a hard Brexit," said analysts at brokerage Credit Suisse, in a research note. "Equally, the chance of a second referendum has also risen a little. Other factors are [pound] supportive: less austerity and reduced likelihood of a second independence referendum in Scotland."

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

June 12, 2017 16:20 ET (20:20 GMT)