BoA: Commodity Futures Are China’s Next Casino
“In the Game of Thrones, before someone declares interest of entering the game, he or she needs to think carefully because the consequences of losing can be extreme. The same could be said about the latest “game” of trading commodity futures on China’s three commodity exchanges, in our view. We believe that loose monetary/credit policies and moral hazards are the main drivers behind the latest sharp rally, rather than improving fundamentals.” — Bank of America Merrill Lynch
Until a few weeks ago, no one could understand why commodity prices were suddenly charging higher after 2015s dire performance. Commodity markets remain oversupplied, and there’s been no serious improvement in economic data from either...
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