China's growth will drive commodity rally: BlackRock

BlackRock's Catherine Raw says commodities will continue their bull run and remain an attractive investment at relatively cheap valuations.

The fund manager in BlackRock’s natural resources team says while mining equities having rallied this year, up 61% in dollar terms, valuations are still half the levels seen in May 2008. Raw believes China’s growth plans and increasing confidence in the world economic recovery will continue to propel commodity prices. “We expect China to continue to have a significant influence over demand for commodities, given the commodity-intensive stimulus package from the Chinese government and their future growth plans,” Raw says. “Economic data coming out of China this year has suggested th...