13.09.2013 - Commodity market increased in August amid improved macroeconomic environment and increased geopolitical risk
Commodities were higher in August as China’s growth outlook improved and the risk of the US Federal Reserve tightening remained uncertain. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management business, said, “Chinese growth may have stabilized over the period. Commodities are likely to benefit from improving Chinese growth momentum, as it may be supportive of increased demand. At the same time, mixed US economic data and sharply declining emerging market currencies and securities have clouded the already uncertain outlook regarding the possibility of a Federal Reserve tightening in September." "Regardless of whether the Federal Reserve tapers or not in September, it seems unambiguous that the Federal Reserve is going to err on the side of being overly easy with its policies. This may increase the risk of inflation overshooting expectations, especially should economic growth materialize stronger than is currently expected.” (Press Release)