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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- In the past few months, we have been concerned that the downward revisions in growth expectations due to the Delta variant combined with the sharp fall in Chinese liquidity were going to weigh on the commodity market.
- While the momentum in copper, which investors view as a barometer of the world economic growth, has been fading since May with the industrial metal constantly reaching lower highs, the trend in oil (and other energy commodities) has remained firm.
- We previously saw that oil and nat gas have historically been the best 'inflation hedges', performing strongly in periods of accelerating inflation.
- This chart shows that oil prices (Brent) recently broke above an important downward trending resistance line, which could indicate that Brent front month futures could continue to trend higher in the ST despite the elevated uncertainty.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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