scorecardCommidities investors panicked and pulled £1 billion during the China stocks crash
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Commidities investors panicked and pulled £1 billion during the China stocks crash

Commidities investors panicked and pulled £1 billion during the China stocks crash
Finance1 min read

Commodities speculators panicked in June as the Chinese market rout took hold, and pulled the money they had just put in.

According to a note from Barclays analysts, inflows into financial derivatives linked to commodities totalled more than $1 billion (£650 million) in April and May, but that was quickly reversed in June, as investors pulled $1.6 billion (£1 billion) during the crash.

Here are the main points:

  • Energy had the biggest outflow at more than $900 million (£581 million), as investors lost interest in oil due to consistently weak prices.
  • Precious metals lost more than $350 million (£226 million).
  • Agriculture and base metals saw outflows of about $200 million (£129 million) each.

This chart also shows the just how fast commodities prices collapsed compared to 2014:

Commods 2015 v 2014

Barclays

When compared to the Shanghai composite stock market, you can see just how closely linked commdoties and the Chinese stock market is:

SHCOMP_Quote_ _Shanghai_Stock_Exchange_Composite_Index_ _Bloomberg_Markets

Bloomberg

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