Watch These Commodity Stocks

These stocks are under pressure from growing fears of rising interest rates. 

Vikram Barhat 23 June, 2021 | 1:10AM
Facebook Twitter LinkedIn

Shipping Conatiners

The recent sharp decline in commodities put the skids on the red-hot bull run we saw in the first half of this year. The U.S. Fed’s signal that the rate hike could come sooner than expected pushed up the U.S. dollar, and sent commodities tumbling due to the inverse relationship between the two. The commodities downdraft further intensified on the signs of the Chinese government tightening its monetary policy.

Analysts say the pullback was overdue after increased industrial demand on the back of economic reopening sent commodities soaring in the first half of the year. The S&P GSCI, index that serves as a benchmark for commodities investments, has gained 27% for the year to date, far surpassing the nearly 11% gains for the S&P 500 index and just over than 17% for the S&P/TSX Composite Index, as of June 18.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Do You Want To Take Control Of Your Finances?

Find The Best Tools Here

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Cameco Corp21.72 CAD-2.12
CF Industries Holdings Inc46.45 USD1.07Rating
Nutrien Ltd74.10 CAD-0.11Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies