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Further evidence that sentiment is bottoming out

We do not expect the future paths to be smooth, but the rallies in commodity prices over the past week are consistent with the relatively positive views we have been expressing for some time. Indeed, market sentiment may now be bottoming out, supported by growing evidence that the previous sharp falls in prices are prompting the supply cuts necessary for a sustained recovery. And on the demand side, worries about China are beginning to fade too.

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