Mitsubishi UFJ: U.S. rate cut imminent, commodities expected to Rebound

On August 1st, Mitsubishi UFJ analysts Ehsan Khoman and Soojin Kim stated that as the market approaches the long-awaited U.S. rate cut, investors' interest in commodities will rebound. Commodities are currently the worst-performing cross-asset class of 2024. This is partly due to weakening fundamentals: global economic growth data slowed in the second quarter, and uncertainty in the U.S. political situation rose. However, low interest rates in a non-recessionary environment have historically been favorable for commodities, and the start of the Fed's rate cut cycle (currently expected to begin in September) is expected to boost this complex situation.