The prices of metals and energy commodities slumped this week in the wake of the sell-off in global equity markets and a general move out of riskier assets. Markets shrugged off data showing strong Chinese commodity imports in January, but this may be because activity at the start of the year tends to be distorted by the timing of the Lunar new year holiday. Plans for a larger-than-expected fiscal stimulus in the US also failed to lift market sentiment.
Turning to next week, commodity markets could continue to take a lead from developments in broader financial markets. We are not expecting a significant rebound in US equities in the coming weeks, but nor do we expect the rout to continue. Away from the markets, President Trump is set to unveil the details of his $1.5trn infrastructure plan on Monday and China’s Lunar new year holiday will start on Friday.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.