Equity Analysis /
United Kingdom

GB : Commodities - Overall - Choppy prices vs. bearish outlook

    Tom Price
    Tom Price

    Analyst - Strategy, Accounting and Sustainability

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    Yuen Low
    Ben Davis
    CGS-CIMB
    16 August 2022
    Published byCGS-CIMB

    In the last 4 weeks, most metal/rock prices have rallied on the expectation that US inflation would soon come under Fed control, slowing rate hike cycle/QT-ing, etc. This simple story just got complicated. Yesterday, China released some surprisingly weak industry/consumer data + cut rates (bearish). Today, we’re told that one of Europe’s monster zinc smelters will soon close on the region’s ballooning power grief (bullish). So, prices are diverging again. Time for some perspective on this sector’s industry/media noise…