Shares of commodities producers fell as the dollar rebounded against some of its peers.
"Industrial metals have generally outperformed their commodity peers this year, with copper prices hitting a two-year high last week," said Richard Turnill, global chief investment strategist at money manager BlackRock, in a note to clients. Production cuts spurred by the "multi-year" commodities crash has resulted in diminished supplies, sparking the rebound, Mr. Turnill said. "We see signs that reduced supply and increased demand may be more than temporary," Mr. Turnill said, citing reforms in China that "are curtailing overproduction of certain metals," and a sustained global economic expansion. Despite China's gradual transition to a consumer-oriented economy from a manufacturing one, demand there is likely to remain strong, Mr. Turnill said.
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(END) Dow Jones Newswires
July 31, 2017 16:44 ET (20:44 GMT)