Monday, October 21, 2013

Commodities and Global PMI



Commodities have matched the movement in growth in the global economy. With global PMI hovering around 50 for the last two years, there has been no tailwinds to push demand higher. The result is that commodities have been driven by supply shocks which have pushed prices lower. Commodities showed robust gains when the PMI was showing strong momentum, but the flat growth prospects means there is nothing to shift demand higher. 

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