Commidities investors panicked and pulled £1 billion during the China stocks crash

Commodities speculators panicked in June as the Chinese market rout took hold, and pulled the money they had just put in.

According to a note from Barclays analysts, inflows into financial derivatives linked to commodities totalled more than $US1 billion (£650 million) in April and May, but that was quickly reversed in June, as investors pulled $US1.6 billion (£1 billion) during the crash.

Here are the main points:

  • Energy had the biggest outflow at more than $US900 million (£581 million), as investors lost interest in oil due to consistently weak prices.
  • Precious metals lost more than $US350 million (£226 million).
  • Agriculture and base metals saw outflows of about $US200 million (£129 million) each.

This chart also shows the just how fast commodities prices collapsed compared to 2014:

When compared to the Shanghai composite stock market, you can see just how closely linked commdoties and the Chinese stock market is:

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