The Baltic Dry, in a nutshell, is an index which measures shipping costs for commodities including iron ore, copper and steel. In their daily bulletin, Bankinter analysts highlight that this index is currently at record lows (504 on Friday), reflecting the decline in global trade, but particularly in Asia.
“This is one of the contradictions which concerns us: asset prices are rising because of the QEs and the absence of alternative investments with reasonable yields, yet GDPs and EPS are being revised downwards…It’s as if 2016 was already being priced in, pressured by the flow of funds. It’s worth keeping a close eye on this kind of contradiction,” Bankinter experts say.
A few weeks ago, the World Trade Organisation (WTO) cut its forecasts for 2015 to 2.8% from 3.3%.