Goldman Sachs flags downside risks for commodities before China stimulus kicks in

“The promise of stimulus has made commodity markets act like equity markets, building up risks of a sharp correction,” analysts at the Wall Street bank said in a note dated Feb. 21. Over a 12-month period, the bank forecast returns of 14.3% from energy, 4.3% from industrial metals and a negative 0.8% from precious metals. Commodity markets have come under pressure as mounting fears that the new flu-like virus will grow into a pandemic have heightened worries of a slowdown in global economic growth. …read more

Source:: Yahoo Finance

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