Weakening Metals Prices Presage Weaker Stock Markets

With austerity in Europe and China’s property bubble deflating, it is not surprisingly that metals prices are weakening. But unless something drastically changes to push fundamental demand of metals higher, or the outlook for equities is not good, says Morgan Stanley.

Metal prices, which tend to be a good predictive indicator of global industrial production, have just gone materially negative for the first time since the financial crisis began, which means that global manufacturing data is likely to turn negative over the next few months.

◄ Back

Next ►

Picture 1 of 2