Sounds counter intuitive, doesn’t it? Well, not really when the you look at the reality of the situation as the Financial Times has done in a recent article based on research and commentary by Australia’s Macquarie Bank.
2016 marked a turning point for most commodities. After 18 months of declines, prices have surged this year in a manner not seen since the 2009-10 Chinese stimulus. Plentiful Chinese liquidity has boosted sentiment and order books, the FT points out, across a range of industrial metals and oil, in spite of an underlying backdrop of excess production capacity and inventory overhang...............................................Full Article: Source
|