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From Precy Dumlao, Opalesque Asia:
The commodities market "shake out" in May which saw the sector plunging by 10%, fulfilled the predictions of Swiss-based asset manager, Tiberius according to their latest Tiberius Market Commentary.
The report indicated that the commodities markets started to show corrections during the first five trading days in May after various economic indicators showed slightly negative results, but the biggest sell off was noticed after the European Central Bank held a press conference on May 5 which saw the EUR/USD exchange rate correct by about five US cents in two days. This event exerted strong pressure on the commodity markets.
By the middle of May, commodity prices bottomed out against a backdrop of wild, intraday fluctuations. Fortunately, the second half of the month saw the market recovering which was sustained all the way to the end of May, causing a recovery for about half of the index-level price declines suffered earlier.
Among the major commodity indices, the Dow Jones UBS Commodity Index (DJUBS) lost -5.1%, only slightly ahead of the Rogers International Commodity Index (RICI), which fell -5.2%.
Coming in further behind was the energy-heavy S&P Goldman Sachs Commodity Index (GSCI) with a loss of -6.9%.
All commodities sectors took a beating in May, particularly silver, once considered as the h...................... To view our full article Click here
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