Ouch!

Commodity investors could be forgiven for a huge sigh of relief that this week is over. The combination of the crisis in Greece and – especially – worries about the fallout from the slump in China’s stock market hit oil and metals prices hard, although sentiment began to improve as hopes of (yet another) Greek deal rose and Chinese equities stabilised. Among the biggest fallers, the price of iron ore hit our year-end target of $45 per tonne. However, we continue to see a partial recovery, to at least $60 in 2016, as the worst fears about demand prove to be exaggerated.