Commodities were lower in September as decreased geopolitical risk and commodity-specific fundamentals weighed on the market. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management business, said, “As of month end, headlines were focused on the US government shutdown which began on October 1st. There is also heightened concern over a potential failure to raise the debt ceiling on time, as well as unease surrounding the ability of policymakers to reach a lasting solution when these issues arise again towards the end of the year.
Uncertainty on the fiscal front may have been one obstacle standing in the way of the Federal Reserve tapering its quantitative easing program at the September FOMC meeting. It is possible that fiscal risks that are not fully resolved may lessen the chances that the Federal Reserve tapers at either the October or the December FOMC meeting.” (Press Release)