The big story this week was the 5% drop in the oil price on Thursday, despite the fact that OPEC extended its production cuts for nine months. It appears that investors were expecting deeper cuts. Elsewhere, agriculturals had a poor week, exacerbated by the fall in the oil price.
Next week, commodity markets will be closely watching China’s official and unofficial manufacturing PMI for May, due on Wednesday and Thursday respectively. We expect the downturn
that started in April to have persisted. Attention will return to the US on Friday, with the release of
the May employment report. A strong number will probably seal the deal on a June rate hike.
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