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Ukraine conflict: commodity rally creates winners among Chinese oil, mining groups
- Prices of commodities from aluminium to oil capped thier best week since at least 2018, fuelling gains in Chinese mining stocks
- ‘Gold is well on its way to becoming the ‘TINA’ (there is no alternative) safe-haven asset in coming years,’ Schroders says
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Russia’s invasion of Ukraine and the ensuing sanctions are pushing commodities to their best rally in at least four years because of supply-chain disruptions. Gold and Treasuries are also benefiting from global risk aversion.
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“The Russia-Ukraine crisis could disrupt commodity supply and push up inflation,” said Ye Bingnan, analyst at CMB International, in a report last week. “Russia is an important supplier of oil, gas, wheat, nickel, palladium and chemical fertiliser.”
The Bloomberg Commodities Spot Index jumped 13 per cent last week, the most since at least 2018. Some stocks in Hong Kong have outperformed amid the crisis and volatility since the February 24 attack, notwithstanding the unfortunate war casualties.
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Ukraine says Russia violates ceasefire as Putin warns no-fly zone would be declaration of war
Ukraine says Russia violates ceasefire as Putin warns no-fly zone would be declaration of war
Here are a handful of winning stocks as the war enters its second week and sanctions on Russian entities and individuals are set to bite harder.
Oil producers
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