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Commodities Markets Split By Regulatory Fears, Recovery-Goldman
Jun 4,2010 09:15CST
industry news

NEW YORK, Jun 03, 2010 (Dow Jones Commodities News via Comtex) -- The commodities markets are torn between regulatory concerns on one hand and encouraging signs of recovery in the developed world on the other, the head of commodities North America at Goldman Sachs Investment Research said Thursday.

Allison Nathan told the Metal Bulletin copper conference in New York that concerns over regulatory policies are "justified" and are "forcing clients to consider worst-case scenarios."

But at the same time, Nathan said economic data have been "strikingly positive."

"There are lots of signs to be encouraged about future commodities price strength, but there is lots of conflict about these two views in the marketplace," she added.

Nathan said the recovery in the developed world has been pleasantly surprising.

"The concern over the last year has been the developed markets, but data from these countries has been very positive," she told delegates.

The main driver of commodities growth, China, is meanwhile holding up "extremely well," she said, with the recent concerns over the weaker-than-expected Institute of Supply Management data from the Asian giant "still exceptionally strong."

"China needs to slow its growth to be sustainable," she said. "It needs rate hikes and currency appreciation," she added.


Goldman Saches GS

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