The Hope That’s Driving Key Commodity Prices Higher
- Iron ore surged on expectations for Chinese monetary stimulus
- Analysts concerned surpluses are building in some commodities
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Whether it’s crude oil, copper or iron ore, some important commodities for the global economy have rallied into what may prove an unprecedented demand shock. While bulls say that’s because of anticipated Chinese monetary stimulus, others see another downward correction looming.
Brent crude futures are now trading up about 9% from their year-to-date lows, copper is up almost 4% while iron ore -- a trade that is entirely dependent on China -- has surged by 16%.