Iceweasel-l10n-gu-in 15260esr-2 binary49 comments
Shares trading online uk
To say that was a tumultuous year for commodities would be an understatement. The major commodities across an array of sectors which pretty much are synonymous with global trade are heavily in the red in , from the energy and mining sectors to the metals and grains sectors. And this all boils down to one of the fundamental theories of economics of demand and supply. There have been sectors, such as the metals and grains sectors which were negatively impacted by the global economic glut lack of demand , particularly within the Emerging Markets space.
On the other hand, the price of oil for example has been adversely impacted by supply concerns as the leading oil-producing countries are pumping more oil than ever before, sending oil prices to 7-year lows, the consequence of which is driving some large energy companies into unchartered territory. Is volatility in commodities expected to persevere in ? Weaker economic activity in China coupled with an evident structural shift in the Chinese economy to a more services based economy and less commodities based one as well as a slowdown in growth in other EM economies has hurt commodities in If the USD continues to strengthen, we would expect this to remain an ongoing headwind for commodities traditionally priced in USD.
Few analysts, asset managers and investors had forecasted the rapid and drastic depreciation of EM currencies and commodities. Movements this year have, undoubtedly, increased the need for greater efficiencies and higher productivity within the commodities space.
Over the past ten years or so, demand for global commodities has been primarily driven by demand for China and EM as economic growth has increasingly diverged from the developed world. However, lower commodity prices and weaker Chinese import growth hit the commodity export-based economies the most such as Brazil, Venezuela and Russia. I would find it extremely difficult to expect a rebound in global trade activity if commodities do not find support and subsequently increase in a marked manner from current levels.
Other market coverage including coverage of the International Bond Markets is also available. Important Notices The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.
Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website.
CC has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website. Weak sentiment dictating growth prospects for Join our Mailing List National. Skip to primary content. Skip to secondary content.