Jim Wiederhold
Associate Director, Commodities and Real Assets, S&P Dow Jones Indices
Commodities Rise 36% in 2022 after a Flat July
The S&P GSCI remained flat in July, holding on to a 36% YTD gain despite the bearish sentiment permeating the broad financial markets. This benchmark for world commodities has proven its merit during extremely hot inflation. The Fed hiked interest rates another 75 bps to fight inflation late in the month, but several factors across…
Commodities: Inflation, Interest Rates and the U.S. Dollar
After last week’s highest inflation print in over four decades, the U.S. dollar (USD) rose to its strongest level in 20 years, as measured against a broad basket of currencies. The euro also hit parity with the USD for the first time since 2002 as a consequence of Europe’s front-line exposure to the Russia-Ukraine conflict…
Compliance versus Voluntary Carbon Markets
After the launch of S&P GSCI Global Voluntary Carbon Liquidity Weighted, the first-to-market benchmark that seeks to track the current performance of global voluntary carbon futures markets, we thought it would be wise to go into further detail regarding the two main types of carbon commodity markets. These two markets are similar in that the…
Introducing the First Global Voluntary Carbon Market Index
The S&P GSCI Global Voluntary Carbon Liquidity Weighted is the first-to-market benchmark for the current performance of global voluntary carbon futures markets. The index is designed to track the CBL Nature-Based Global Emissions Offset (NGO) futures, underpinned by the Verified Carbon Standard registry, and the CBL Global Emissions Offset (GEO) futures, allowing delivery from CORSIA-eligible…
Commodities for Breakfast
Except for intermittent fasting groups or keto dieters who tend to skip it, breakfast is considered by many to be the most important meal of the day. Now, there is a reliable and publicly available benchmark for the performance of the most liquid commodities typically consumed at breakfast. The S&P GSCI Dynamic Roll Breakfast (OJ…
Reductions in Risk Caused Disparate Returns for Commodities in April
Another higher inflation reading helped the S&P GSCI, the broad commodities benchmark, to post an additional 5.1% gain in April. Many market participants realized the U.S. Fed may be behind the curve and have started allocating capital to commodities in 2022. Agriculture and energy continued to outperform last month, while metals and livestock underperformed. Among…
- Categories Commodities
- Tags agriculture, aluminum, commodities, copper, corn, energy, gold, heating oil, industrial metals, livestock, natural gas, precious metals, S&P GSCI, S&P GSCI Agriculture, S&P GSCI Energy, S&P GSCI Industrial Metals, S&P GSCI Livestock, S&P GSCI Soybean Oil, soybean oil, SP GSCI Corn
- Categories
- Commodities
Commodities Continued to March Higher Last Month
The S&P GSCI posted its best quarterly return in decades, as inflation continued to post the highest readings in decades. Commodities rose another 9.63% in March after an 8.8% rise in February. Geopolitical conflict and inflation were the two main reasons for the broad-based uptick in commodities prices (see Exhibit 1). The S&P GSCI Energy…
Inflation Is Here. A Multi-Asset Dynamic Hedging Strategy Is Also Here.
The S&P Multi-Asset Dynamic Inflation Strategy Index was launched in 2021 to offer a more dynamic, rotational approach to integrating inflation hedging than the typical static 5%-10% allocation to commodities. The index dynamically weights asset class constituents monthly based on the underlying inflation regime represented by the latest monthly U.S. Consumer Price Index (CPI) reading.1…
Any Volunteers? Transparency in Voluntary Carbon Markets
The S&P GSCI Nature-Based Global Emissions Offsets and the S&P GSCI Global Emissions Offsets are the first two indices launched by S&P DJI that are based on voluntary carbon markets. The first compliance-based index, the S&P GSCI Carbon Emissions Allowances (EUA) was launched two years ago and tracks the EUA futures based on the European…
Powering Up the European Energy Markets with the S&P GSCI Power Indices
On Feb. 21, 2022, S&P Dow Jones Indices (S&P DJI) launched a series of S&P GSCI European Power Indices, the first indices of their kind in the market and an expansion of the single-commodity offering of indices based on the S&P GSCI. The S&P GSCI European Power Indices are designed to provide reliable and publicly…