|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||17.35 - 17.52|
|52 Week Range||13.69 - 17.62|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.86%|
After years of languishing under low market volatility and weak global growth, commodities are on the move higher. One index is at a multi-year peak as prices rise in energy, gold and base metals. Traders in the space see the rally continuing in the face of a trade war threat and as the market gets more comfortable with the global economic growth theme.
Copper miners, including Freeport-McMoRan (FCX), Southern Copper (SCCO), and Antofagasta (ANTO), rallied last year as the metal surged ~30%. The charges are paid by copper miners to smelters for processing copper concentrates. Over the last year or so, LME inventory changes have been notorious for their timing, with sudden rises or falls impacting copper prices.
Firma Oponiarska Debica Spólka Akcyjna (WSE:DBC) generated a below-average return on equity of 11.17% in the past 12 months, while its industry returned 13.61%. Though DBC’s recent performance is underwhelming,Read More...
In this article, we’ll see how the trade war fear has impacted commodities (DBC). Specifically, we’ll be looking at aluminum and copper prices. Notably, copper is seen as an indicator of global economic activity, and some analysts refer to it as “doctor copper.” Falling commodity prices have led to a selling spree in copper miners like Freeport-McMoRan (FCX), BHP Billiton (BHP), and Rio Tinto (RIO).
There are expected, and possibly more aggressive, interest rate hikes over the next several years, and potential commodity supply constraints resulting from years of capital expenditure reductions in the metals and oil industries. Prices for commodities like gold, oil, copper, iron ore, cobalt, and lithium have been rising since mid-2017, mainly buoyed by higher demand due to widespread global growth. China’s supply-side curbs and years of weak investment in new mines globally put commodities in a sweet spot.
Once again interest rates are rising along with commodity prices. This economic upturn has been the slowest post-war expansion we have experienced and is soon to become the longest. Consequently, the global economic expansion has taken longer than expected but is gaining momentum.
The March 21 announcement by new Fed Chairman Jerome Powell indicated that the Federal Reserve is likely to be more aggressive in its rate hiking policy over the next few years as the effects of reduced business regulation, broad fiscal spending, and stimulative tax cuts are fully incorporated into the economy. After nearly a decade of the effective Federal Funds Rate hovering around 0%, we feel the time for investors to critically evaluate their portfolio’s performance in rising interest rate environments has arrived. Looking at tables of historical performance for a number of asset classes in rate hiking cycles over the last 50 years, perhaps most striking is the performance of commodities—including gold.
Strong chart patterns for key commodity-related ETFs suggest that this could be one of the only segments to withstand a continued sell-off.
After showing huge contractions in recent years, Brazil’s economy has been recovering gradually since 1Q17. The Brazilian economy grew at an annualized rate of 2.1% in 4Q17 compared to 1.4% in 3Q17. The country’s overall economic growth rose 1% in 2017 compared to its contraction of -2.2% in 2016.
With global growth kicking in and fueling demand, commodities are well positioned for a strong year. Beyond the macro trends, commodity companies have been undergoing a rationalization process over the past few years. This has provided added support for prices.
Is the Sell-Off in US Aluminum Producers Justified? As we noted previously in this series, aluminum prices have seen downward pressure this year. Among other factors, fear of a trade war seems to be playing heavily on aluminum prices. As a traded commodity, aluminum prices also tend to reflect market sentiment along with underlying demand and supply dynamics.
Assessing Firma Oponiarska Debica Spólka Akcyjna’s (WSE:DBC) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company hasRead More...
There has been a selling spree in equity markets over the last couple of weeks. The repercussions of the equity market carnage are evident in commodity markets (DBC). Copper, which some analysts see as an indicator of the global economy’s health, has come off its 2018 highs.
The PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC), the largest broad commodity-related exchange traded fund, is on firm footing while the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), ...
The PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC), the largest broad commodity-related exchange traded fund, is up nearly 3% this year, an ascent boosted by the weak U.S. dollar. The The ...