Commodities had their best quarter in almost three years, driven by supply concerns and optimism over demand. Investors, though, might not want to get too cocky.
In the first quarter, total returns for the Bloomberg Commodity Index of 23 raw materials rose more than 6 percent, the most since the three months ended in June 2016. Crude oil paced the advance, while nickel led gains in industrial metals. A surge in January propelled the index amid bets on resilient global economic and signs of tight supplies in many markets.
“The fundamental concerns remain on the supply side, with constraints for many commodities,” said Darwei Kung, a money manager at DWS Investment Management Americas Inc.’s $2.8 billion Enhanced Commodity Strategy Fund. “Capital investment necessary to expand capacity at a faster pace than demand was just not spent for the last several years.”Oil prices stormed back in the first quarter, recovering from worries about a global oversupply that pushed crude into a nosedive to end 2018.
“We are only bullish on oil for the next two-three months, after which we become bearish” on the outlook for increased supplies from the Permian Basin and elsewhere, he said.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick Op-Ed: Brexit Will Damage Europe – it is time for political creativityBrexit will damage Europe’s role in the world in a way that Europeans currently seem unable to grasp. The clock is ticking towards 29 March and the United Kingdom’s exit from the European Union. Whether Brexit turns out to be 'soft' or 'hard', the UK is set to endure a bout of severe economic turbulence. But Britain has survived much larger crises and will overcome this one at some point. For me, the real question is what Brexit means for the future of Europe.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Moody’s stands pat and SA’s economy breathes a sigh of relief – for nowIt all depends if they are in a good moody, or a bad moody, said Rico’s cartoon in Friday. Turns out they were in a good moody.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: South Africa Holds Key Rate as It Cuts GDP GrowthHigher power, food and fuel prices will likely crimp household spending and limit prospects for stronger economic growth, resulting in the South African Reserve Bank having to hold the nation’s key interest rate for the rest of the year.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Capitec’s results show the heat is on in bankingCapitec's results on Thursday were more keenly watched than normal because of a slew of new entrants into the banking field. The company reported good results, growing its customer base by an astounding 1.5m more customers. But sometimes looks are deceiving.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Monday: Five Things You Need to Know to Start Your DayA ray of hope for the global economy from data showing a rebound in Chinese factory output, Turkish election goes down to the wire, and the U.S. jobs report will be watched for signs the bond rally is justified. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Stocks Slide Again as Bond-Yield Drop Stokes Worry: Markets WrapStocks slumped again in Asia as the precipitous decline in developed-market sovereign bond yields continued to unnerve investors about the economic outlook.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick Friday Cartoon: Good Moody, Bad Moody
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Five Things You Need to Know to Start Your DayAll Brexit models rejected, Facebook tackles racism and things are looking up for China's economy. Here are some of the things people in markets are talking about.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK : China and the US: Xi and Trump miss their chance for meaningful trade reformsWhile Chinese President Xi Jinping appears to care only about maintaining political control, US President Donald Trump seems to care only about himself.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK OP-ED: Why do financial markets overreact to bad news?We live in the era of the 24-hour news cycle. Corporate issues make the headlines and then rumbleon and on, taking new turns and causing more damage as company responses are analysed in minute detail. Sometimes, major incidents beget huge crises where significant investor responses are justified. In others, we often get the feeling that markets go over the top.
Source: dailymaverick - 🏆 3. / 84 Read more »