Commodity prices may reach trough levels in near term: renCap

摘要

London—As fears of a global recession intensify, commodity prices could fall closer to trough levels in the near term and lead to significant cuts to earnings forecasts, Rus- sian investment bank Renaissance Capital said. Analysts at RenCap said attractive spot free cash flow yields for the mining sector were not sustainable. “Equity markets have historically been a leading indicator for falling commodity prices, with consensus earnings lagging significantly,” they said.