Crude Oil’s Inflation Trade Is Unwinding, Credit Suisse Says
- Bets on commodities to hedge inflation face recession risk
- Demand for oil downside protection is growing: Credit Suisse
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This year’s standout inflation trade of backing commodities is coming under pressure on concern a recession will curb demand for raw materials.
That’s the view of Mandy Xu, head of equity derivatives strategy at Credit Suisse Group AG, who said derivatives-market bets for crude show growing speculation that the deteriorating economic outlook may outweigh supply challenges.