Commodity price gains - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, notes that the commodity markets outside of oil have been firming, consistent with generally stronger than expected demand in China this year and a modest recovery in a number of large emerging markets. 

Key Quotes

“In general, this may be pointing to improving demand in the global economy.  Low global bond yields and stronger asset markets (outside of banks) are helping support a global recovery, even though it may still be a modest recovery.

Oil prices have jumped since Wednesday on prospects of more control in OPEC supply, so now oil prices are also firmer along with other industrial commodity prices, helping lift energy shares. Firmer oil prices may also help lift global confidence by raising inflation expectations, contributing to a weaker JPY, and underpin the US energy sector that has been a significant drag on US investment and manufacturing activity over the last two years.  US Core capital goods orders firmed for the third month in a row in August.”