Commodities shrug off Brexit on path to best qtr since 2010
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COMMODITY investors aren't letting the shock of Brexit spoil their best three months since 2010. While the United Kingdom's vote to leave the European Union has whipsawed markets, raw materials have still outperformed stocks, bonds and the dollar in the second quarter with a return of 13 per cent. The Bloomberg Commodity Index entered a bull market last month as oil advanced above US$50 a barrel and prices of everything from soyabean meal to zinc rallied. The index is still down about 50 per cent from the high in 2011.
"Investors are now shrugging off the impact of Brexit as the market has already priced it in," Will Yun, a commodities analyst at Hyundai Futures Corp, said by phone from Seoul. "With the oversupply largely shrinking, the market is on the path of re-balancing as the worst seems to be over for now and we've hit the bottom."
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