| Two weeks ago Julian Jessop, head of commodity research at Capital Economics, sent out a client noted headed: "How vulnerable are commodities to the tapering of QE3?" He and we sure got the message after Ben Bernanke did his tapering unveiling last week. Copper fell to $US6739 a tonne, nickel plunged 3.5 per cent to $US13,628/tonne and tin was off 3 per cent to $US19,439/tonne.
They, like the Dow, rebounded anemically on Friday. On top of tapering of money-printing by the Federal Reserve, we now have China seemingly in the throes of a credit squeeze. Jessop two weeks ago did not foresee Fed tapering as having too great an impact on commodities, mainly because a good deal of damage had already been done...............................................Full Article: Source
|