What is the relationship between stock markets and commodity markets



Commodities can be distinguished in four categories: energy (oil, gas, electricity), metals (gold, copper, iron), livestock and agricultural products (rice, palm oil, corn, coffee, cocoa, cotton, sugar, orange juice).
Commodities represent actual, physical products, while stocks represent ownerships – a part in the future cash flows of a company.
Stock, also known as equity, represents ownership interests in corporations.There are a numerous stocks, and their classifications largely depend on the rights they confer on the holder.Currency has an impact on all markets, but the main one to focus on is commodity prices. Commodity prices also affect bonds and stocks, while the U.S. dollar and commodity prices generally trend in opposite directions. Want to invest in commodities and stock?There are numerous advisory firms such as bazaar trading, 100 MCXtips. From my trading experience, i would suggest KheloMCX, best commodity advisory company.

(Source : https://www.quora.com/What-is-the-relationship-between-stock-markets-and-commodity-markets)




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