Deep Dive: Commodities roller coaster shows no sign of slowing down

Chinese economy key outlook

clock • 3 min read
Darius McDermott of Chelsea Financial Services

Darius McDermott of Chelsea Financial Services

Darius McDermott, managing director of Chelsea Financial Services, dives into the world of commodities

The topsy-turvy ride for commodities shows no signs of slowing down anytime soon. It started a few months ago, with talk of a post-Covid super-cycle when commodity indices rallied as government stimulus and low interest rates fuelled inflation expectations. The S&P GSCI - a benchmark of 24 commodities in agriculture, energy and metals - has returned 40% year-to-date, a stark contrast to the 26% fall seen in 2020. Unfortunately, the outlook for this asset class can change faster than most; and concerns about the Delta variant - alongside fears of China's construction sector being in st...

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