Australian recession Commodities Global Macro

Mining GFC hosed by oil rebound

David Llewellyn-Smith

Thursday, 7 April 2016

A dovish Fed and an oil rebound hosed the resurgent Mining GFC last night. The US dollar was weak:

Commodity currencies roared:

Brent oil roared:

Base metals went “meh”:

So did miners:

But high yield loved it:

Shares also powered higher and it just goes to underline once more that the entire global economy is right now being driven by one price and one price only: oil.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.