In September, 14 out of 22 Index constituents traded lower, according to the Bloomberg Commodity Index. Credit Suisse Asset Management said commodities were lower in the month due to fundamental factors.
“Although fundamental factors may have dominated individual commodity performance for the month, global macroeconomic data continued to be important. The U.S. Federal Reserve delayed an interest rate hike, citing concerns over global growth, low U.S. inflation and the need for further gains in employment,” said Nelson Louie, global head of commodities for Credit Suisse Asset Management. “Towards the end of the month, higher consumer confidence and an upward revision to second quarter GDP growth may have strengthened the case for an interest rate rise later this year. Meanwhile, the Eurozone’s inflation rate was forecasted to turn negative in September, pressuring the ECB to increase stimulus measures. Economic growth in Asia remained weak, as the Asian Development Bank reduced its growth forecasts for the region overall. The ongoing slowdown in Asia may lead to additional policy easing in China and other Asian economies.”
Credit Suisse Asset Management observed the following:
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