ECB's QE not expected to give commodities much of a boost

London

BEATEN down commodity prices are unlikely to get much relief from an expected one trillion euros (S$1.53 trillion) of monetary stimulus in Europe, as the plan is very different from the US version several years ago that gave raw materials a huge boost.

The European Central Bank (ECB) recently launched a government bond-buying programme that will pump new money into a sagging eurozone economy. This should indirectly buoy commodities by boosting economic growth and confidence, stimulating demand for raw materials used in sectors such as construction and cars