NGLOY - Iron ore surges following China's bigger than forecast rate cut

Iron ore futures in Singapore are on track for their first weekly gain in five, as China slashed its benchmark reference rate for mortgages by more than expected on Friday, lifting hopes for further support to revive its economy. The most-active June iron ore contract in Singapore (SCO:COM) surged 6.1% to $134.25 yuan/metric ton after midday trading, marking its largest daily increase since mid-March, and the most-traded September iron ore contract on China's Dalian Commodity Exchange jumped 5.3% in daytime trading to 842.50 yuan/ton. Potentially relevant tickers include (NYSE:BHP), (NYSE:RIO), (NYSE:VALE), (OTCQX:FSUMF), (OTCQX:AAUKF), (OTCQX:NGLOY), (OTCPK:GLCNF), (OTCPK:GLNCY) Chinese banks cut a key interest rate for long-term loans by a record 15 basis points to 4.45%, which will reduce mortgage costs and may help counter weak loan demand. A key drag on China's growth has been the property sector, which accounts for a sizeable portion of the country's overall steel demand, and

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Iron ore surges following China's bigger than forecast rate cut