Why China's slowdown is a nightmare for commodities in one chart
China is slowing down.
The country has been front-and-center over the last few weeks with its volatile stock market and its newly devalued currency.
But, importantly, this decline isn't an isolated event.
Since China is such a big player in the global economy, and a major trading partner of many countries, its slow-down will inevitably hit other countries. And, HSBC economists point out that commodities are a particularly vulnerable sector in this stagnating climate.
"Given China's role as the world's biggest commodity consumer, any slowdown adversely affects prices significantly. Copper prices are down more than 20% from recent highs and oil is down roughly 40%," writes HSBC economist James Pomeroy.
Take a look below just how thirsty China is for commodities:
HSBC
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status