The S&P GSCI (an index for commodities which have active, liquid futures markets, e.g. crude oil, wheat, sugar) has tumbled 29% since the start of October. Commodities tend to move in the opposite direction of the dollar which has been stronger as of late. Prices of non-precious metals (such as aluminium) have fallen faster than agricultural products (people still need to eat).
The GSCI index, which was developed by GS in 1991, reflects a diversified, dollar-denominated basket of commodity futures, and sparked an explosion in commodity index trading since its launch, and corresponding volumes on futures markets as well.
The GSCI index, which was developed by GS in 1991, reflects a diversified, dollar-denominated basket of commodity futures, and sparked an explosion in commodity index trading since its launch, and corresponding volumes on futures markets as well.
No comments:
Post a Comment