As liquidity gradually declines, we expect wider credit spreads, weak commodity prices and a moderately stronger dollar.
Even as weak commodity prices depress export prices, sluggish demand growth in the rich world may limit emerging economies' export volumes.
"Weak commodity prices have hurt both of them really hard, which makes it all the more important for them to have someone favorable to their interests sitting as a president in 2014, " says Dr. Yohanes Sulaiman, a political science lecturer at Indonesian Defense University.
Also, the precious metals on this day have decided to follow the weak raw commodity sector, which is pressured by the risk aversion in the market place Wednesday.
FORBES: A.M. Kitco Metals Roundup: Gold Sharply Lower amid "Risk Off" Day, Profit Taking
Bernanke gets credit for not strangling the economic recovery in its cradle, but his sub zero money market rates bear sizable responsibility for the weak dollar, commodity speculation and the inherent inflationary impact all this entails.
The weak dollar means higher commodity prices, and China is the leading importer of raw materials.
And his supporters are probably profiting from the weak-dollar, commodity-inflation bet whose profitability depends on the persistence of those deficits.
Mulally is also worried about the competitive environment, rising commodity prices and the continued weak economy.
Will they be tough enough to safeguard investors from commodity operators who run circles around weak regulators?
Schultz made mention of rising commodity costs and the favorable effect of a weak dollar, as Starbucks brings in profits from around the world.
Early safe-haven buying gave way to heavy selling pressure that was due to strong gains in the U.S. dollar index, sharp losses in crude oil and other commodity markets, profit-taking pressure and weak-handed long liquidation.
FORBES: Comex Gold Ends Sharply Lower amid Stronger U.S. Dollar Index, Lower Crude Oil
The good news is that weak inflation in China, due to lackluster domestic demand and some lower commodity prices, will allow Beijing monetary authorities to keep interest rates low in the coming months.
There was a very weak European Union manufacturing report released overnight that added a negative tone to the raw commodity markets, including the precious metals.
Oil and mining companies were hit with falling commodity prices as fears mount that the global economy will stall due to weak demand from developed economies.
Asian stock markets fell on the China news, while raw commodity markets, including gold and silver, were also seeing some selling pressure on the weak China data.
FORBES: Gold Weaker amid Bearish Outside Market Forces; Bulls Still in Technical Control
Asian stock markets fell on the China news, while raw commodity markets, including gold and silver, also saw some selling pressure due to the weak China data.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Near Steady; Gains Limited by Stronger U.S. Dollar
Over the last ten years the price of oil has spiked thanks to a weak dollar, thus creating the illusion of scarcity despite abundant global supplies of what is a rather prosaic commodity.
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