FXStreet (Guatemala) – Analysts at Brown Brothers Harriman noted the divergence in the commodity sector.
Key Quotes:
“Over the last few months, there has been a huge divergence in the commodity space. The energy sector underperformed, agricultural products outperformed, while precious and industrial metals were somewhere in the middle. For simplicity, here we use the sub-indices of Bloomberg’s commodity index. The implications of these differences are important.”
“Oil exporters like Mexico, Russia and Malaysia are unambiguously worse off in relative terms, while importers such as India and Turkey are better off. Generally speaking, developed countries are bigger agricultural exporters than EM, so they did better in relative terms. Brazil is a notable exception among the larger EM countries, and comes out on top compared with its peers since iron ore and soybeans are its largest exports. Also note a difference between Colombia (big energy exporter) and Chile (a big metals exporter).”
(Market News Provided by FXstreet)