Commodity Rebound Seen by Barclays as Limited in 2nd Quarter
Any commodities rebound in the second quarter will be limited by a stronger dollar and accelerating supply in copper and oil, Barclays Plc said.
Investors should be prepared to sell industrial metals if there is a “significant” rise in prices, Kevin Norrish, an analyst at Barclays in London, said in a report dated today. The growth outlook is not strong enough to support commodities the way it has other markets, he said.
The Standard & Poor’s GSCI gauge of 24 commodities is little changed this year with all but seven of the index components down for the year. Kansas wheat has fallen 7.8 percent and arabica coffee is down 7.1 percent.
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