Global weekly: Too far, too fast

Press release -

ABN AMRO Private Banking

This week, the low oil and commodity prices pushed down bond, equity and Asian currency markets. Group Economics believes the commodity correction has gone too far, too fast, but expects the oil price to remain low for longer.

Macro update
Brent oil prices dropped towards January lows after the release of US inventory data. This came on top of the already negative market sentiment regarding commodities in general, including oil. Many commodities are confronted with oversupply. This can be partly the result of many years with high prices, which gave an extra impulse to production. But it is also the result of disappointing demand. And, regarding China, due to increased worries regarding future demand. This combination has led to heavy pressure on cyclical commodities.

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