In a week when fears about global economic growth were stoked by a dovish Fed and weak euro-zone flash PMI readings for March, commodity prices actually performed rather well. However, we think that energy and industrial commodities will struggle to hold on to their 2019 gains in the face of mounting evidence of a global economic slowdown.
Looking ahead, markets will continue to follow closely developments in the US-China trade talks. US officials are set to arrive in Beijing to resume talks on Thursday and any signs of progress would probably give a lift to most commodity prices. Otherwise, it is a quiet week on the data front, although there could be further downbeat news about the euro-zone economy when several business surveys are released.
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