Selling global commodity signs of flabby warning to the global economy

Global basic commodity prices are obtained, as trade war tensions are compatible again between the two largest economies in the world – and recession signs shown in red.

The S&G GSCI, which tracks global commodities across the energy, minerals and agriculture sectors, explains that prices have decreased more than 8 % since April 2, when US President Donald Trump announced a large number of “mutual” tariffs. This was despite the simple recovery of prices after the White House leader announced a circulation tariff on Wednesday.

However, Trump appeared on the heat China by walking long distances on the rate of tariffs on Chinese goods to 125 %.

“The collapse of goods (prices) is the circle of the circle, a sign that the global recession is in full swing,” said Marco Babic, a Macro and geopolitical expert at BCA Research.

China is the largest consumer of commodities, and the higher definitions are likely to be expected to be withdrawn not only on the growth of the country, but also to consume some commodities, especially energy and industrial minerals.

Of all the commodities in the basket, the energy has decreased more since April 2, as it decreased about 12 %, according to S& P Global Energy scale.

Industrial minerals recorded the second sharp loss of about 9 %, followed by soft goods, which decreased about 5.2 %, according to the S&P Pys Global.

As for oil, the broader negative feelings also coincided with OPEC+ The latest decision to accelerate the pace of the group’s production is increasing. OPEC+ Long -distance hiking set out, but increases have been identified before. Oil prices are still in its lowest levels in several years despite the slight recovery after the Trump tariff, with Brent global measuring about $ 64.78 a barrel and the average US West Texas at $ 61.77 a barrel. Oil prices are sensitive to commercial escalation, given China’s position as the largest crude importer and the fact that raw goods are denied by US dollars.

Goldman Sachs reduced the oil price expectations for both raw standards to $ 62 a barrel for a girl and $ 58 a barrel for WTI by the end of the year.

More declines in commodity prices fueled the choir of American recession calls. Jpmorgan expects US GDP to contract 0.3 % This year, after a strong year of growth.

“The broader step that we have seen in crude oil since April 2 indicates that the market is pricing at greater possibility of stagnation,” said Engi commodity strategy.

“The prices of commodities are thrown through the deterioration of quick feelings, as the global recession is feared from the mountain that escalates on trade and geopolitical tensions,” said Sabreen Chaudhry, head of commodity in the Fitch Research Unit. She added that the possibility of falling into the United States in the recession is now more than 50 %.

She added that industrial minerals are still suffering from the suffering of commercial tensions and stagnation concerns with expectations in the dark real estate sector in China.

Copper in particular is an indication of economic health, given its use in many sectors. While the future copper contracts gathered in New York on Wednesday, they are currently trading at $ 8,380 per ton on NYMEX, which represents a decrease of more than 16 % since April 2.

Metal markets are likely to remain compressed like China, The largest consumer of copper in the worldIt comes increasingly under the spotlight.

“The growth in the United States is likely to weaken the definitions and China already to revive its economy, and it is likely to weaken the demand for copper and other industrial minerals,” said Iowa Manethi, a strategic commodity expert in Inge.

Likewise, Goldman Sachs reduced her expectations for copper, citing a surplus of metal and its expectations for the stagnant American economy.

The Investment Bank wrote in a note: “We expect that the demand for the gross domestic product will be the total GDP, in addition to a base less than 2024 to demand in China, which was previously expected,” the Investment Bank wrote in a note.

In the case of an American stagnation, Goldman Sachs expects copper prices to decrease to its lowest levels in the first Tramp War Covid-19, at $ 6500 and $ 5900 per ton, respectively.