Many commodity prices rise to new highs for the year - AmpGFX

Higher commodity prices may reflect increased optimism that the global economy, particularly in the infrastructure space, will grow faster lead by the USA and other countries plans to promote more infrastructure spending, suggests Greg Gibbs, Director at Amplifying Global FX Capital.

Key Quotes

“Coal prices in China have come off recent highs on news that its government is easing restrictions on production in response to rapid price gains and to help support growth.  However, Iron ore and steel futures prices have revisited recent highs despite news that Chinese authorities have raised margins and taken other measures to cool speculation. Copper prices are also making new highs for the year.”

“Oil prices have rebounded to revisit their highs this year after the OPEC agreement to cut production.  US natural gas prices have risen more sharply to new highs for the year, driven by US weather and demand for heating.”

“Rising commodity prices are likely to help boost inflation expectations and tend to push up global bond yields.”