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New wave of selling commodity bulls are bleak due to departure

New wave of selling commodity bulls are bleak due to departure

copper prices fell on Thursday as an international barometer of economic growth to less than $ 5000/ton, hit a six-year low; gold prices fell to a five-year low; short reverse oil prices in the last month, fell to less than $ 45 a barrel.  Institutional investors watching closely, track 22 Bloomberg commodities cash index of commodity prices, also fell to its lowest level since August, close to 2008-2009 levels during the financial crisis.

commodity Bulls have sadly left.  According to Bloomberg data, investors this month have tracked the industrial and precious metals ETF withdrew more than $ 1 billion.  

Chinese demand slowed

in August this year the market has experienced against selling of commodities, but traders and analysts believe that this situation is even more worrying, because the factors driving this round of price decline is no longer the oversupply, but the decline in market demand in China.  

United Kingdom, the financial times quoted Standard Chartered Bank analyst Nicholas Snowdon said, whether it is air conditioning or cable output data in October, continued sharp contraction in economic activity. Information on Wall Street yesterday mentioned in October, above-scale industrial added value compared with actual growth 5.6% growth than in September continued to fall, and expansion of electricity generation declines from September.  Reviews said Qu Hongbin, Chief China Economist at HSBC, fell more than expected increase in industrial production value to 5.6%, slowdown in the mining and electricity sectors is the main cause.  

last year's best-performing hedge fund managers in the energy sector said Pierre Andurand, many signs that compared with earlier this year, oil demand growth slowed significantly, world GDP growth will continue to be reduced.  

the financial times said, in some measure, commodities prices have returned to China a decade ago to speed up before you start the process of urbanization, some leading indicators even dropped to the level of 2001.  

Fed rate hike expectations have increased

while Bloomberg says, in addition to the impact of the slowdown in the Chinese economy, the fall in commodity prices is perhaps mainly because investor expectations for Fed rate hikes boost.

a Bloomberg survey of analysts, 66% people are expected at next month's policy meeting of the Federal Reserve raised interest rates a month ago this percentage was only 39%. Fed rate hike means that compared to other assets and the payment of interest and dividends, the metal less attractive.  Raising interest rates will also lead to a stronger dollar, also puts pressure on the appeal of raw materials.

Chief Investment Strategist Jim Paulsen of Wells Capital Management said the latest wave of the fall in commodity prices is due to changes in market potential for the fed to tighten policy judgment.  Raising interest rates will directly affect the competitive asset, increasing the possibility of a slowing economy, a stronger dollar, these are bad products.  

global economic growth has been weak, it also magnifies the negative effects.

Comex gold futures on Thursday hit 1073 dollars an ounce in February 2010, low, then rebounded to 1081 dollars per ounce, the end of the day-0.4%.  Copper futures fell 2.7% to us $ 2.1585 in July 2009, a new low.  

in addition, aluminum, nickel and zinc prices were down, promoting the Bloomberg index of industrial metals slipped to March 2009 low this year, the index has fallen 26%.

mining company shares hit

commodity prices, mining companies are not immune. Commodities giant Glencore stock prices to below £ 1 for the first time in a month, down 7.64% to 95.92 pence on Thursday.  So far this year, Glencore's shares have slipped 68%.

in addition, the mining company Anglo American shares in London tumbled 8.7% to 1999 years minimum; Freeport-McMoRan-5.8% in New York on Thursday, five trading days by 24%.

 

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