26 July 2012 15:09 [Source: ICIS news]
TORONTO (ICIS)--Canadian commodity prices fell by 3.7% in June from May, marking their seventh decline in a row, because of the ongoing crisis in Europe and lower growth rates in ?xml:namespace>
Toronto-based Scotiabank said that its monthly Canadian commodity price index was now 19% below April 2011 – just prior to the advent of concerns over excessive eurozone sovereign debt.
The correction compares with a 46% price decline in the second half of 2008 in the wake of the 2008–2009 global economic and financial crisis, the bank said.
"A sharp loss of business confidence worldwide – linked to eurozone financial strains and slowing world growth – led investors to shift from riskier assets such as commodities and equities into the security and liquidity of US Treasury securities," said Patricia Mohr, the bank's commodity market specialist.
"Oil prices – which often trade on global growth expectations rather than industry developments – were particularly dampened by poor confidence,"
However, the bank’s commodities price index was rallying back in July following an EU summit in late June, Mohr added.
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