“(Reuters) – Fund managers investing in commodities futures and commodity-related stocks see this week’s sell-off as a short-term dip before the prospect of tightening supplies drives a further rally.
Selling began in earnest on Thursday after weak economic data raised expectations of reduced commodities demand. It continued on Friday, taking one of the hardest-hit, silver, down almost 30 percent since the start of the month.
Brent crude, which hit a two-and-half-year peak above $127 last month, has fallen around 16 percent from April’s close to a session low on Friday of $105.15 a barrel.
The 19-commodity Reuters-Jefferies CRB index rose by 0.3 percent in early trade on Friday after falling 5 percent on Thursday, its fifth biggest one-day fall on record, as traders and global macro hedge funds took profits.”
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