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How the US shutdown's hitting your commodity strategy
Commodities are being rattled by the ongoing government shut-down in the States. There are real fears about the longer-term implications for growth and demand. The DJ-UBS commodity index is down for a fourth week in a row. All sectors, apart from soft commodities, showed losses this week.
That said, oil is continuing to trade in a narrow range. Saxo Bank's Head of Commodity Strategy, Ole Hansen, says continued tightness following supply disruptions this summer have kept prices fairly supported. However, a prolonged shutdown followed by debt-ceiling talks in America leave the upside limited right now.
The best perfomring commodity this week's been sugar. World sugar supplies continue to be revised lower due to cuts in production forecasts. Gold and silver have also had an erratic week. With US data announcements currently suspended, the market has little fresh news to go on.
02:31 minutes
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