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Economics Gazette

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November 17, 2019

Commodity markets are currently recording their longest winning period in history

Commodity marketsThe commodity markets are currently recording their longest winning period in history, which began at the end of 2017. Because of the thriving manufacturing sector worldwide, the investors are counting on rising demand for raw materials. The Bloomberg Commodity index, which tracks the performance of 22 commodities, reported 14 consecutive growing sessions, closing at its highest level since last February.

The last year was the second in a row, in which commodity markets ended in positive territory. The investment bank Goldman Sachs Group forecasts that 2018 will continue to bring new growth for markets.

The Bloomberg Commodity index rose by 12% from mid-June 2017, with the latest cold weather in the US, supporting the rise in wheat and gas. However, prices remain below their highest levels since 2008.

The upward trend in commodity markets raises the stock price of the largest mining company BHP Billiton to its highest level since 2014. The British oil company BP reported profit last year for the first time since 2005.

The macroeconomic data from China and news from central banks around the world in the coming weeks will largely determine where the market will continue to move.

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