《Market Analysis》
  • Continued growth of Commodities pricing sets new record
    2018-01-09 12:08:15

Author: Century Mining Database

Starting from 2017 year end until now in 2018, commodities price increase has set a new historical record. Crude oil prices has reached all time high, and raising global production index has investors looking bullish on future raw material demand.
Last Thursday, Bloomberg Commodities Index reported an unprecedented 15day increase on 22 raw materials. Following the price increases on metals and petroleum, shortage of supply, changes in demand and the weakening Dollar, there's possibility of further rise of the indexes. The price of palladium which is used in the exhaust system of automobiles is reaching new historical high. Goldman Sachs and other financial institutions has indicated positive outlook for 2018 following the 2 year continuous rise on commodity prices. Last month, Goldman has reiterated their 12 month recommendation to increase on holdings.
Since mid June of last year, Bloomberg Commodities Index has recovered by 12%.  The recent cold fronts hitting America has pushed wheat and natural gas prices upward, which also boosted the Index figures. The manufacturing output data figures in USA release last Weds were better than expected, causing Copper prices to raise as well. The PMI figures from Europe earlier this week also fortified investors confidence.
Commodities price increase has lead to the rise in stock prices of manufacturers. The worlds' largest mining Company, BHP Billiton share price has reached its highest on the London stock exchange since 2014.  British petroleum company BPPlc has also achieved their first 2 year continuous share price increase since 2005. As of this Wednesday, Jing Shun Asset Management's index tracking Fund PowerSharess DB has continued its 11 day rise on trading, representing its longest record winning streak since inception in 2006.