Are basic resources equities a harbinger of a rebound in materials?

Posted on 04. Mar, 2015 by Jean Jacques Ohana in Weekly Focus

Since 2010 onwards, the global trends of commodities producers’ equities (S&P Energy, S&P Materials, Stoxx 600 Europe Basic Resources, Stoxx 600 Europe Energy) and commodities futures have moved in synch.

As illustrated in figure 1, Riskelia’s trend is presently accelerating on commodities producers whereas the trend remains depressed on the GSCI commodities. The improvement in dynamics [...]