Energy and Metals Outlook

Confidence in Energy and Metals continues to be constrained by uncertainty about the global economy, both in the short and long-term. Fears about a slowdown in China, which consumes about half or more of annual demand for some commodities, intensified in May, following fresh volatility in the renminbi. A semblance of stability returned in June, but high levels of debt in its economy, which expanded only 6.7% (y-o-y) in Q1, could have serious global financial ramifications. Combined with the risk of Brexit and a marked deterioration in US employment readings, the US Fed could not justify earlier warnings of a rate hike on June 15.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s