Commodity markets largely shrugged off soft activity and spending data out of China this week. Indeed, speculation around the outcome of next week’s OPEC meeting kept oil prices well supported. At the same time, gold benefited from the unfolding political turmoil in the US.
Looking at the week ahead, investors will be focusing on the upcoming OPEC meeting, scheduled for Thursday, where members will discuss an extension to the oil output cuts implemented in November. We think that the cartel will prolong the deal by nine months and that this should be enough to bring stocks back in line with their five-year average. Elsewhere, the minutes of the Fed’s May FOMC meeting, to be released on Wednesday, will be closely monitored for any hints that a June rate hike is still on the way.
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