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Commodities Hurt

23 November 2015 by lberuti

At the very end of last week, commodity prices rebounded somewhat and people were hoping for a pause in the recent downwards trajectory. The respite was short-lived though, and the march lower resumed today. There were broad based losses across much of the metal space. Mining companies are hit by the slowing economic growth in China that cuts demand from the biggest commodities user and pushes metal prices lower. The measures they have announced so far to cut production have failed to convince the market. The US dollar gains, led by the expected Fed tightening in the coming weeks and which gained further momentum today, did not help either and also contributed to make the basic material sector the underperformer of the day.