| Supply/demand fundamentals may prove more supportive of prices. Nice timing from Barclays. The bank’s commodities research team put out a note midweek that argued the raw materials sector this year may shrug off its tendency for fourth-quarter weakness.
Cue the latest surge in oil prices. Barclays sees three reasons for a generally sturdy commodity sector performance in coming months. What it terms the macro environment is supportive. Asian economic growth is set to improve while the bank thinks the rally in the US dollar, which tends to have an inverse relationship with buck-denominated assets, is starting to fade.............................................Full Article: Source
|