What does the collapse of commodities mean?
The decline in commodity prices is mainly due to the appreciation of the US dollar. From the data point of view, the number of non-agricultural employment in the United States increased to 248,000 in September, which also exceeded market expectations and achieved the largest increase in six months. The unemployment rate has also dropped to a six-year low of 5.9%, which also shows that the labor market is active and has become an important support for US economic growth. A series of good economic data recently also contributed to the 12-week rise of the US dollar index. It is also widely expected that the Federal Reserve will probably start raising interest rates next year, with the rate increase exceeding 3% in September, which also contributed to the decline of this wave of commodity prices and set a new low in the past five years. Some institutions also predict that the rise of the US dollar index may continue to 20 15, which also indicates that some commodities such as energy, precious metals and basic metals will continue to be suppressed by the US dollar index. The data shows that in September, the industrial capital outflow of trading raw materials in the US market was as high as 873 billion US dollars, the largest since April. It also shows that the good price of goods lacks support. Now that the US dollar index has risen to the highest level in four years, the downward trend of commodities still needs to continue.