Resource-hungry China is the ‘price setter’ in international commodity markets, while commodities make up 70% of Brazil’s exports, Nomura’s Tony Volpon says. Brazil’s Bovespa stock index is a particularly commodity heavy index. Volpon adds: ‘We think Brazil’s much vaunted “new middle class” is a direct result of Chinese commodity demand’.
Our question is: what happens when China slows down and commodities prices tank? 

Source: Citywire

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