Topic: Fundamentals For Key Commodities Remain Strong
Commodity Markets Lower In December, Yet Fundamentals For Key Commodities Remain Strong
New York, January 12, 2012 - Commodities were lower in December as macroeconomic sentiment continued to weigh on risky assets and supported a stronger US dollar.
Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management division, said,
“Commodities were lower in December, ending an already volatile fourth quarter. Broad-based commodities indices essentially traded sideways in an extremely volatile range, as investors continuously re-evaluated the European debt crisis’ potential impact on the global economy. Despite these headwinds, the global manufacturing PMI actually improved in December. We believe this may reflect underlying strength in the US and key emerging markets.”
Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added,
“Fundamentals for key commodities largely remain supportive, with generally tight inventory levels and continued strong demand. The threat of supply shocks is particularly acute for the crude complex and Agriculture. While Precious Metals have lost their luster of late, demand for currency alternatives and hard assets is likely to remain strong amid continued loose monetary policies. We believe investors may derive long-term diversification benefits in conjunction with potential inflation protection through a strategic allocation to commodities.”