Given the negativity in global equity markets, the relative stability of industrial commodity prices (especially metals) over the last few weeks has been reassuring. Even Brent crude, while slipping back again in the past week, is at least still above its January lows. Indeed, the slump in equity prices seems to be largely detached from economic reality, as shown in the divergence between stock markets and composite measures of global economic activity. Of course, it is still possible that the turmoil in the financial sector will drag activity down. However, the resilience of commodity prices may itself be evidence that economies are not collapsing.
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