By Sharon Cho Flush from a collapse in everything from oil to aluminum to cotton, commodity bears are taking a break. A measure of returns from 22 raw materials advanced on Tuesday, recovering from the lowest level since 1999 on concern a slowing Chinese economy will exacerbate supply gluts. Shares in miners and explorers outside China including Glencore Plc, Fortescue Metals Group Ltd. and Antofagasta Plc recouped some losses after a selloff that wiped $2.7 trillion from global equity markets. “Short-term stabilization is possible but that doesn’t mean it cannot fall further,” Dominic Schnider, head of commodities and Asia-Pacific foreign exchange at UBS Group AG’s wealth-management unit in Hong Kong, said by phone. “The headwinds are still there.” Raw materials have plunged as supplies outstrip demand amid forecasts for the slowest Chinese growth since 1990. Risk appetite returned on Tuesday as China’s central bank cut its benchmark lending rate for the fifth time since November and lowered the amount of cash banks must set aside. Oil futures gained as much as 4.3 percent in New York, rebounding after a 5.5 percent drop on Monday. Brent, which tumbled below $45 a barrel for the first time in six years, was 2.4 … continue reading
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Source: CTRM Center