Platinum, Palladium Sag on Concern Demand May Slow in Europe

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The problem with this news is that it is very negative, signaling that the European economy is much worse than most believed,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a report. “It looks like we are in for another doldrums type of day."

Platinum and palladium declined in New York on concerns industrial demand may fall after the European Central Bank and the Bank of England cut borrowing costs by historic amounts to revive slowing economic growth.

The ECB lowered its benchmark refinancing rate by 75 basis points to 2.5 percent earlier today, the biggest reduction in its history. The Bank of England slashed its benchmark rate by a third, to 2 percent, the lowest since just after World War II, saying that U.K. credit markets remain “extremely difficult,” and consumer spending and business investment has stalled.

“The problem with this news is that it is very negative, signaling that the European economy is much worse than most believed,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a report. “It looks like we are in for another doldrums type of day.”

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