Continuing financial crisis and sovereign debt impose itself on every investment decision being taken now. Saw the crisis in Europe during the month of May rise (again) to turn into a dangerous point with the focus shifted in Spain, already burdened with its government under great pressure because of a funding crisis banks. In the meantime Greece is waiting for new elections within the next few weeks with the potential to lead to the development of the future presence of Greece in the euro area is at stake. China, as evidenced by the main engine of global growth slowdown since 2008 while the U.S. economy suffers a slowdown of the mid-session.
We have helped these events to take investors to government bonds safe in light of the experienced returns German during the past two years of negative performance in the light of security enjoyed by currencies such as the Japanese yen and in particular the U.S. dollar, which rose to its highest level in 23 months against the euro . In the meantime, commodities exposed to the lowest drop this month since 2008, with the Dow Jones UBS of goods by more than 10%, with the exposure of all sectors, as described below, under enormous pressure to sell. The index S & P Goldman Sachs Commodities worst monthly performance since 2008, which fell by about three 10% in light of falling crude West Texas Intermediate and Brent crude oil by more than 20% of the gains that they had Hhadaha to enter from the technical point in the market deteriorating witness increasing the stock decline.
The performance of precious metals is relatively better, which indicates that attract gold in the safe areas has not completely disappeared. Given the strong movement taking place in the dollar, gold losses were limited, so they recorded a slight gain in euros. However this is still struggling to restore the gold glow to its ability to attract investors, supporters of the market, such as hedge funds.
Received the energy sector, crude West Texas Intermediate, hardest hit with the increasing focus has shifted from geopolitical risks to slowing demand. The outbreak of the situation with regard to speculation in the Brent and WTI play an important role in explaining the sudden drop that has occurred. Were subjected to the agricultural sector to high levels of volatility which has cattle and wheat gains more than compensate the large losses made by cotton, corn, soybean, and please main reason for this improved climate predictions and speculative investors reduced their exposure in the long run.
Industrial metals also suffered a sharp fall in the slowdown in China, which opened the way for reflection on the source of demand that can occur in the future. He received tin hardest hit, while the second-worst record the performance of copper in the month since a recession that occurred years in 2008 after falling by 11.5%.
Outperform goldAfter the initial decline experienced by the gold early in the month of May, trading during the past few weeks in a narrow range and somewhat volatile. Investors have found it difficult to identify whether gold was a safe haven or risky and so they decided that Adharbwa in this range instead. As noted above has been marked by the performance of precious metals and gold in particular the type of relative quality in spite of the high price of the dollar, which put a lot of goods under pressure. Occupies hedge funds and other investors supporting other centers on a simple long-term recession that has occurred since 2008, has failed so far to participate with the decline in momentum at the moment.Withdrawal of investors in gold products traded in the stock market 17 tons or less than 1% of the total investments in the month of May, which indicates the need to apply a deeper correction before they can change their opinions Btfaalha clinging to the long term on gold. One of the concerns that imposed itself on a lack of active buyers, who have had a role in helping to stabilize the market during previous sales. The weak demand caused by what is happening in China and especially India, which is the largest consumer in the world in light of the rupee traded at record levels registered in the decline is seen in light of the economy from the weakness in performance lasted for a decade.
The broken line below the barrier of 1.520 carries with it the risk has another $ 100 down, which makes potential buyers in the long run more convinced to defer their participation until the markets are witnessing the return of 1.610 over the barrier.
Faced performance silver and platinum difficulty with the decline in platinum to gold, which rose by 11.5% after falling below $ 1,400 an ounce. The outlook for platinum supported by supply disruptions in some times in the stop demand in the automotive sector. The distorted image Alvdilh because of the increased surplus in production and demand of financial investors to avoid the height of the surplus even more. In addition, the base metal does not play a major role at the present time, while the prevailing sentiment by avoiding risk-controlled investment decisions taken.
Show levels of copper negative returns during the year. Given that China and Europe combined constitute about 60% of global consumption of copper, the recent news from these regions continue their negative impact on the outlook in the near term. However, the decline in supply and low stock levels outside of China should help in reducing the decline in spite of him led hedge funds and other accounts in support of the accumulation of the largest development in the short term in almost three years.
Crude oil degraded technicallyTurning the month of May, just as was the case last year, to be the months scary for investors in the oil sector, where prices of Brent crude and West Texas Intermediate decline resulted from the sudden shift in focus away from the fear of sharp rises driven by geopolitics to slowing demand .I have suffered these types of crude oil to fall by more than 20%, which is a description of the technical points that turn to the market then the market has deteriorated.
Have caused the dollar strength and the weakness of basic materials and the increasing speculation terrible damage on prices, while consumers felt a lot of satisfaction. The sense of suffering will find its way into the major producers, who are demanding higher oil prices to balance their budgets in, which could spark a slowdown in the display to control the falling prices. Spent Saudi Arabia for many months to discuss the $ 100 crude oil price reasonable for both sides and has now reached will shed light on additional comments with great interest, where he helped record set by Saudi Arabia in production during the past few months in support of the current weakness witnessed in prices.
And again began to speculative investors are suffering due to the wrong direction traveled by trading where they found themselves struggling to reduce their positions in the long run for the WTI and Brent return what was the case in March after a record has reached 500 million barrels. On May 22, the situation was still close to the barrier of 326 million barrels, as would a more sudden dips occur until today’s date. Compared with that, it has caused a similar filtering process occurred during the period from March to October 2011 to reduce long-term position in half.The chart below shows the level of the significant impact that we have reached in relation to Brent. After recording the highest multiplier, we must now see if we’ll get to the lowest level multiplier. It seems clear that the continuation of refraction to below $ 100 notes from the technical point to a further decline.
Decline in natural gas
Recovered natural gas during the first days of May some of its strength in the presence of signs of lower prices start to influence the levels of production and consumption due to high transition energy generators to the U.S. of test gas. But with the price approaching $ 3 per million British thermal units, the advantage gained by the gas on coal began to fade, which trigger a slowdown in this transformation. Believe that prices should not exceed $ 2.5 during the remainder of the season pumping up to the month of October, in order to ensure a better balance in the market. The chart below shows the current rise in the levels of gas stocks in underground storage stations at the level of the United States for the five-year average. Therefore, the main turn for the lower prices will seem a drop in prices over the next few months.Undo editsDictionary