| Some emerging-markets exposure can be a valuable currency – for commodities producers. Currencies of commodity-producing countries have mostly fallen against the U.S. dollar this year, helping cushion earnings of miners who dig there. Platinum has fallen 20% this year in dollar terms, but only about 6% in South African rand. Copper is down 15% in dollars, just 4% in Chilean peso.
This can keep beleaguered producers in business. It also means big falls in investment spending don’t necessarily mean equally large cuts in activity. Tudor Pickering Holt notes emerging-market oil producers like Lukoil, Rosneft, CNOOC and Petrobras all expect capital spending to be down 30% this year, helped by currency moves, versus 15% for U.S. and European companies...............................................Full Article: Source
|