Despite the recent wobble, prices should rebound

The prices of most industrial commodities fell this week owing primarily to concerns about the spread of the coronavirus, particularly in the south of the US. Falls in equity markets also weighed on prices, at least at the beginning of the week. Nevertheless, there are growing signs that global economic activity is bouncing back more strongly than many expected. Providing that there isn’t a second wave of virus infections, we expect that most commodity prices will resume their gradual recovery in the coming months. Next week is busy on the data front. Most attention will focus on the June manufacturing PMI data for the US (Wednesday) and China (Tuesday/Wednesday) as well as the US employment report (Thursday). We expect that all the data will show a continued revival in economic activity, which should provide a boost to investor sentiment and commodity prices. Away from the economic data, market participants will be keeping an eye on virus infection numbers and the ‘Godzilla’ dust storm, which appears