Stock markets in the United States rose while the dollar fell and commodities rebounded from an early slump led by China's efforts to curb lending.
Commodities rebounded from earlier losses as the dollar reversed a gain, bolstering the appeal of energy and raw-materials as alternative investments.
Australian resource stocks were up broadly as commodities rebounded with stocks.
Because commodity prices rebound early in a recovery and these countries are commodity exporters (oil, coffee and iron).
The case for buying now begins with knowing that, as the U.S. and the global economies recover, emerging markets like Mexico and Brazil will benefit because commodity prices rebound early in a recovery and these countries are commodity exporters (oil, coffee and iron).
Stocks, corporate bonds and commodities all rebounded from March lows, a welcome rejection of the winter's depression talk.
Now, 11 months later and with increased speculation that the economic crisis is waning, commodities have rebounded despite the fundamentals (oil inventories are high in the U.S., and global demand has not materialized).
Leading shares have recovered ground, helped by commodity stocks rebounding as metal and oil prices rose, partly due to some weakness in the dollar.
Bear in mind that dollar prices have been relatively stable over the past few years – yes, some deflation in 2008-2009, then some inflation as commodity prices rebounded, but overall consumer prices are only slightly higher than they were three years ago.
