‘Commodity market to recover first’
Commodities will be among the first markets to recover from the current economic crisis, according to a report by Boston-based financial research and consulting firm Celent.
By PTI |
NEW DELHI: Commodities will be among the first markets to recover from the current economic crisis, according to a report by Boston-based financial research and consulting firm Celent.
The commodity market rally began in early 2002 and continued until mid-2008. Between 2005 and 2008, it saw accelerated growth due to rising demand from emerging economies, capital infusion from non-commercial players and financial investors, and phenomenal growth in trading on commodity exchanges, the report said.
According to Celent, the global commodities markets reached $15.3 billion in 2008 with 85% of transactions occurring over-the-counter. The commodity market attracts investment from all segments ��� pension funds, mutual funds, insurance companies, hedge funds and CTAs (commodity trading advisors).
Pointing out that the market, which forms 2% of the global derivatives market, has fallen during the current economic crisis. The report attributed the decline to huge deleveraging and oversold positions.
Besides, a rapid slowing of the global economy led to hasty exits from commodities, it added. ���The future of the market will depend on the revival of the overall economy,��� Celent said, adding it would spread over multiple regions, and the
focus would be on integrated trading platforms.
The commodity market rally began in early 2002 and continued until mid-2008. Between 2005 and 2008, it saw accelerated growth due to rising demand from emerging economies, capital infusion from non-commercial players and financial investors, and phenomenal growth in trading on commodity exchanges, the report said.
According to Celent, the global commodities markets reached $15.3 billion in 2008 with 85% of transactions occurring over-the-counter. The commodity market attracts investment from all segments ��� pension funds, mutual funds, insurance companies, hedge funds and CTAs (commodity trading advisors).
Pointing out that the market, which forms 2% of the global derivatives market, has fallen during the current economic crisis. The report attributed the decline to huge deleveraging and oversold positions.
Besides, a rapid slowing of the global economy led to hasty exits from commodities, it added. ���The future of the market will depend on the revival of the overall economy,��� Celent said, adding it would spread over multiple regions, and the
focus would be on integrated trading platforms.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
