Commodities have ushered in a super bull market around the world since the outbreak of COVID-19, and are still the best performing asset into 2022, but with recession trading in full swing, commodity markets are rapidly turning bears.
London copper, regarded as a barometer of the world economy, has fallen by more than 20% since March; Brent crude oil fell below the $100 mark for the first time since April, down nearly 30% from its recent high.
The decline in copper and oil prices has led to a continuous decline in the price of raw materials for power cords, which in turn reduces the procurement costs of producers and increases the profits of related companies.
While the current supply of most commodities remains tight, the dim demand outlook and tight liquidity are causing a dramatic shift in sentiment. The market is worried that the continuous tightening of monetary policy by the world’s major central banks such as the Federal Reserve will drag the global economy into a recession.
Post time: Jul-08-2022