AMP Capital Investors, which manages close to $100 billion, is plowing cash into commodities on expectation demand will strengthen with a China-led recovery in the global economy.
The company yesterday switched from an “underweight” allocation in commodities future contracts to “overweight,” said Nader Naeimi, an AMP investment strategist in Sydney. Oil and metals were AMP’s top priorities.
“Yesterday, we made a significant change,” said Naeimi. “The main reason is that we are seeing a clear recovery in China. Even though demand for commodities is quite low now, we’re moving to an environment where it will become very strong. This is about economic fundamentals.">>>MORE
Also from Bloomberg:
Crude oil may be headed for $71.55 a barrel after breaking through $56.10 a barrel, according to Barclays Capital.
Should the June crude oil contract push through the high of $56.10 a barrel reached on March 26, futures may climb past the Jan. 6 intraday high of $59.66 to $62 a barrel, Barclays Capital analysts, led by Jordan Kotick, said in a May 4 report.
Oil could jump to $71.55 a barrel as traders attempt to exit the large number of short positions, or bets that prices will fall, creating a so-called short squeeze, the analysts said. This is equal to the upward moves oil has made from a so- called head-and-shoulders bottom pattern starting in December....MORE