Macroeconomic Uncertainty Weighed on Commodity Market in October

       Macroeconomic Uncertainty Weighed on Commodity Market in October

PR Newswire

NEW YORK, Nov. 13, 2012

NEW YORK, Nov.13, 2012 /PRNewswire/ --Commodities declined in October as
continued macroeconomic uncertainty weighed on markets generally.


Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management
division, said, "Hurricane Sandy, despite the extreme damage and tragic loss
of life, has passed with relatively little impact on commodity markets.
Ongoing macroeconomic uncertainty continues to be the biggest factor weighing
on the commodity markets. At the end of October, politics remained very much
in focus in two of the world's most important economies: the United States and
China. Uncertainty remains on what policies will be followed and how they
will impact the economy and markets. Both governments will oversee economies
in transition, trying to deal with structural challenges while maintaining
burgeoning economic recoveries. Neither political event will solve any long
term structural issues automatically, though increased certainty may be

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total
Commodity Return Strategy, added, "Continued quantitative easing in the US,
and accommodative monetary policy seen across most key markets, should
continue to support the appeal of hard assets as an inflation hedge. Signs of
improved economic growth in the US and elsewhere have not yet dampened central
bank enthusiasm for trying to stimulate economic growth, nor caused inflation
expectations to increase. Inflation expectations remain anchored at near
historic levels, with markets continuing to focus on weak economic conditions
and safety of capital, rather than on protection against the eventual impact
of prolonged, exceptionally loose monetary policy on inflation. We believe
investors will continue to benefit from the long-term diversification benefits
that commodities provide."

The Dow Jones-UBS Commodity Index Total Return was down by 3.87% in October.
Overall, 17 out of 20 index constituents posted negative returns. Livestock
was the best performing sector, with both Live Cattle and Lean Hogs trading
higher. Energy decreased 2.27% for the month. Crude oil and petroleum
products declined despite tensions between Turkey and Syria and lower output
at North Sea oilfields. Hurricane Sandy shut East Coast refineries, roads and
airports, reducing crude oil and fuel demand expectations. Natural Gas was
the best performing constituent within the sector, as excess storage levels
continued to moderate. Agriculture decreased 3.33%, with Coffee the worst
performer. Sugar also declined following reports of buyers in India and China
paying to cancel orders due to existing oversupply. Seasonal harvest progress
in the US and better prospects for Brazilian supply also weighed on Soybeans
and Soybean Oil. Precious Metals fell 3.90%. The latest Hong Kong demand
data, released for August, was weaker than the previous month and weaker than
expected. This added to worries that Chinese demand may ease. Industrial
Metals was the worst performing sector, falling 9.27%. Risk appetite weakened
amid worsening macro-economic sentiment. The lack of concrete resolution in
Europe and the World Bank's downgrade of its economic growth forecast for
China were contributing factors. Chinese manufacturing data did offer some
encouraging signs that activity may be beginning to accelerate.

About the Credit Suisse Total Commodity Return Strategy

Credit Suisse's Total Commodity Return Strategy has been managed for 18 years
and seeks to outperform the return of a commodities index, such as the Dow
Jones–UBS Commodity Index Total Return or the S&P GSCI Total Return Index,
using both a quantitative and qualitative commodity research process.
Commodity index total returns are achieved through:

  oSpot Return: price return on specified commodity futures contracts;
  oRoll Yield: impact due to migration of futures positions from near to far
    contracts; and
  oCollateral Yield: return earned on collateral for the futures.

As of October 31, 2012 the team managed approximately USD 10.7 billion in
assets globally.

Credit Suisse AG

Credit Suisse AG is one of the world's leading financial services providers
and is part of the Credit Suisse group of companies (referred to here as
'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its
combined expertise in the areas of private banking, investment banking and
asset management. Credit Suisse provides advisory services, comprehensive
solutions and innovative products to companies, institutional clients and
high-net-worth private clients globally, as well as to retail clients in
Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50
countries worldwide. The group employs approximately 48,400 people. The
registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse
Group AG, are listed in Switzerland and, in the form of American Depositary
Shares (CS), in New York. Further information about Credit Suisse can be found

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad
spectrum of investment classes, including hedge funds, credit, index, real
estate, commodities and private equity products, as well as multi-asset class
solutions, which include equities and fixed income products. Credit Suisse's
Asset Management business manages portfolios, mutual funds and other
investment vehicles for a broad spectrum of clients ranging from governments,
institutions and corporations to private individuals. With offices focused on
asset management in 19 countries, Credit Suisse's Asset Management business is
operated as a globally integrated network to deliver the bank's best
investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory
requirements; certain products and services may not be available in all
jurisdictions or to all client types.

Important Legal Information

This document was produced by and the opinions expressed are those of Credit
Suisse as of the date of writing and are subject to change without obligation
to update. It has been prepared solely for information purposes and for the
use of the recipient. It does not constitute an offer or an invitation by or
on behalf of Credit Suisse to any person to buy or sell any security. Any
reference to past performance is not a guide to future performance. The
information and analysis contained in this publication have been compiled or
arrived at from sources believed to be reliable but Credit Suisse does not
make any representation as to their accuracy or completeness and does not
accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes "Forward-Looking
Statements" (including observations about markets and industry and regulatory
trends as of the original date of this document), which can be identified by
the use of forward-looking terminology such as "may", "will", "should",
"expect", "anticipate", "target", "project", "estimate", "intend", "continue"
or "believe", or the negatives thereof or other variations thereon or
comparable terminology. Due to various risks and uncertainties beyond our
control, actual events, results or performance may differ materially from
those reflected or contemplated in such forward-looking statements. Readers
are cautioned not to place undue reliance on such statements. Credit Suisse
has no obligation to update any of the forward-looking statements in this

Certain risks relating to investing in Commodities and Commodity-Linked
Exposure to commodity markets should only form a small part of a diversified
portfolio. Investment in commodity markets may not be suitable for all
investors. Commodity investments will be affected by changes in overall market
movements, commodity volatility, exchange-rate movements, changes in interest
rates, and factors affecting a particular industry or commodity, such as
drought, floods, weather, livestock disease, embargoes, tariffs and
international economic, political and regulatory developments. Commodity
markets are highly volatile. The risk of loss in commodities and
commodity-linked investments can be substantial. There is generally a high
degree of leverage in commodity investing that can significantly magnify
losses. Gains or losses from speculative derivative positions may be much
greater than the derivative's original cost. An investment in commodities is
not a complete investment program and should represent only a portion of an
investor's portfolio management strategy.

Copyright © 2012, CREDIT SUISSE GROUP AG and/or its affiliates. All rights

SOURCE Credit Suisse AG

Contact: Katherine Herring, Corporate Communications, +1-212-325-7545,
Press spacebar to pause and continue. Press esc to stop.