Traders work on the floor of the New York Stock Exchange prior to the close of the market in New York.
Photo: Reuters
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China, India, Russia Fuel Prices for Raw Stuff
The probability of the U.S. recession is going up, the economic analysts say from time to time now. The most evident aftereffect is the decline in prices for crude oil and raw material. But the market performs differently for some reason.
The prices for raw assets are accelerating, the trend is solid and no decline in the prices for precious and industrial metals, gas and crude oil is forecasted for the nearest future.
Some analysts attribute this continuous growth to the fact that emerging economies are coming out of dependence on the world biggest economy. Therefore, even if the United States ultimately sinks into recession, the demand for raw material will be still very high in China, India, Russia and Brazil. According to Rio Tinto CEO Paul Skinner, the booming economies of China, India and Russia will set off the slowdown of the United States and other developed nations.
Amid other things, this assumption is proved by the fact that investors no longer withdraw money from emerging markets in time of another economic collapse. Instead, they tend to dispose of the U.S. assets and buy the assets in developing countries, which appear more secure to them.
The stable economic growth will continue in emerging economies this year, particularly in the ones with huge gold and foreign exchange reserves. But even they will feel the global slowdown, an analyst of Dresdner Kleinwort predicted.
www.kommersant.com
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