18 Aug 2015
Commodities remain under pressure – Deutsche Bank
FXStreet (Edinburgh) - Analyst at Deutsche Bank Jim Reid gives his views of the recent performance of the commodities space.
Key Quotes
“The overriding theme yesterday was the continued weakness in commodity markets and yesterday we saw Oil tumble with WTI (-1.48%) tumbling to a fresh six and a half year low at $41.87/bbl and Brent (-0.91%) falling to $48.74/bbl as China concerns, soft GDP data out of Japan and lingering supply-related headlines continue to weigh on the complex”.
“The latest leg lower has seen WTI in particular fall over 11% already this month after a 21% decline in July. Although the falls dragged down energy stocks slightly yesterday, the S&P 500 started the week on a firming footing, closing up +0.52% and rebounding after sentiment was buoyed following the latest US housing data”.
“Once again the weakness in the commodity complex wasn’t just confined to Oil markets as Aluminum (-0.79%) and Copper (-0.97%) also declined over the session, bringing their YTD losses now to -15.4% and -18.8%”.
Key Quotes
“The overriding theme yesterday was the continued weakness in commodity markets and yesterday we saw Oil tumble with WTI (-1.48%) tumbling to a fresh six and a half year low at $41.87/bbl and Brent (-0.91%) falling to $48.74/bbl as China concerns, soft GDP data out of Japan and lingering supply-related headlines continue to weigh on the complex”.
“The latest leg lower has seen WTI in particular fall over 11% already this month after a 21% decline in July. Although the falls dragged down energy stocks slightly yesterday, the S&P 500 started the week on a firming footing, closing up +0.52% and rebounding after sentiment was buoyed following the latest US housing data”.
“Once again the weakness in the commodity complex wasn’t just confined to Oil markets as Aluminum (-0.79%) and Copper (-0.97%) also declined over the session, bringing their YTD losses now to -15.4% and -18.8%”.