Trump re-election may lead to commodity market fragmentation: HSBC

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Commodity markets face greater fragmentation and supply disruptions if former U.S. president Donald Trump wins the Nov. 5 election to return for a second term, an HSBC economist said on Friday.

Commodity markets, already contending with high prices driven by structural supply constraints, also face uncertainties from geopolitical tensions, said Paul Bloxham, HSBC’s chief economist for Australia, New Zealand and global commodities. “This would increase the risk of greater fragmentation of commodity markets and create a supply disruption supporting commodity prices.”

 

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