The relief rally in Chinese equities prompted by additional policy stimulus has turned global sentiment around, but a sustained recovery in commodity prices will probably require hard evidence that the Chinese economy is picking up again. Fortunately, that is exactly what we expect to happen. What’s more, even though we continue to think that the Fed will press ahead with a first rate hike soon, the gradual return of US interest rates towards more normal (but still low) levels would clearly be much less of a threat to global commodity prices than a “hard landing” in China.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services