Cheap Commodities Will Drive U.S. Equities Higher, SocGen Says
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Falling prices for raw materials and energy will boost equities in developed markets and restrain inflation, according to Societe Generale SA.
Gasoline prices falling 80 cents per gallon since June will give U.S. consumers $100 billion more in purchasing power, and benefit the Standard & Poor’s 500 Index, the bank said in a report today. Economic growth in the U.S. and Japan, the third-biggest importer of oil, will benefit the most from less expensive energy costs, Societe Generale said.