Boost from QE3 already starting to fade

Confirmation of the launch of QE3 by the US Fed appears to have marked at least a temporary peak in many commodity prices, with the focus quickly returning to the underlying weaknesses in economic and financial conditions that made the additional stimulus necessary in the first place. The fading euphoria may be a classic example of “buy the rumour, sell the fact”, but doubts about the effectiveness of repeated asset purchases are also growing.