Tags: barclays | commodities | outflows

Barclays: $8.2 Billion Pulled from Commodities in May

Monday, 25 Jun 2012 03:57 PM

Barclays Capital said investors withdrew $8.2 billion from commodity investments in May, the largest in eight months.

"A 'perfect storm' of downgrades, lackluster macroeconomic data and the ongoing eurozone debt crisis transformed a retreat by investors into something approaching a stampede during May, evoking memories of 2008," Barclays said in a research report.

Barclays said May ended with total assets under management of $394 billion in commodities, down $35 billion from the previous month.

"The speed and extent of recent commodity price falls suggest market participants are anticipating a severe deterioration in the macroeconomic outlook," the bank said.


Energy saw the largest outflows in May, at $2.7 billion, the highest since December last year. Agriculture saw the second-biggest outflow at $2.3 billion, the highest since September last year.

For precious metals, outflows of $1.9 billion were the highest in exactly a year, the bank said.

"Commodity data flow is still healthy, and if the green shoots of recovery in China take root, a mild recovery in prices is likely. However, longer-term gains will likely remain capped by European leaders failing to enact a lasting solution to the crisis.


© 2017 Thomson/Reuters. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved