Second risk: commodity markets are falling
Contrary to expectations that commodity markets are stabilizing, crashes have recently even occurred. The price of oil has not gone down as much as it has for months, with Brent prices plunging well below the average 200-day horizon. Triggers were higher than expected inventories in the US, strong production data and low demand. For copper, a similar picture shows, here it was also down further than expected. Both show how markets are beginning to price in a disappointing economy. Weaker commodity markets are also a threat to many emerging economies – and this, in turn, is weighing on the economic expectations of industrialized countries.