- BlackRock, CQS funds see one-month falls of over 20 per cent
- Managers say a "speculative positioning wash out" has contributed to weakness
Concerns over global growth slowing have finally started to hit miners’ previously strong share prices, while exchange traded funds (ETFs) and trusts have also seen major selling, as investors get jittery over global recession forecasts and China’s potentially shaky recovery from Covid-19 lockdowns.
“The commodity sector is increasingly being spooked by the recession ghost,” said Ole Hansen, head of commodity strategy at Saxo Bank. “There is no doubt that some of the recent froth is currently being taken out of the market. This is partly driven by macro-orientated funds [that] bought the rally but now are having second thoughts as the risk of an economic slowdown looms ever larger.”