Oil News

China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause higher inflation

China’s Stockpiles Are New Sovereign Wealth Strategy, RBC Says

China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause higher inflation

China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada. “Its part of an overall desire to decrease its exposure to dollar assets,” said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong, in an interview today. China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause “higher inflation and a weaker dollar,” he said. Crude Oil is trading at $56.90 as of 9:20am, London time. Crude’s Pool-position is 91% Long, meaning that most Finotec clients are buying the commodity.

Derivative and forex trading broker Finotec is a division of leading real-time Internet trading company Finotec Trading Inc, which pioneered the world of online forex trading in 1998. After launching our revolutionary forex online trading platform in 2001, we continued to improve our services and now serve clients of all sizes in many locations worldwide, offering them real-time Internet trading not only in currencies, but also in options, commodities,... More