The Bloomberg Commodity Index, which measures the strength of different commodities, fell to 59.89 on Tuesday to hit the lowest level since 1974, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio.
The decline validates fears of prolonged coronavirus-led economic recession. Investors are moving out of base metals as industrial production in most countries is declining. Further, the oil price crash may be adding to bearish pressures around base metals.
The slide in the Commodity Index is a bearish development for the growth-linked currencies like the Aussie dollar and New Zealand dollar.
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