The price slump shows the fear of a recession

Zurich Whether crude oil, copper or agricultural commodities: Investors have been withdrawing from commodity investments on a large scale since the beginning of June. This is putting pressure on prices: European Brent oil has fallen by more than 20 percent since the beginning of June. The price of the important industrial metal copper, a much-noticed economic barometer, fell by 30 percent in the same period.

Stéphane Monier, chief investment strategist at private bank Lombard Odier, confirms: “Markets are increasingly pricing in the risk of a recession in the US and Europe in 2023.”

Michel Salden, chief investment strategist for commodities at Vontobel Asset Management, observes: “The correction that began at the beginning of June is almost as strong as in the financial crisis of 2008, both in terms of speed and scope.”