InvestmentEurope has asked Arnaud du Plessis (left) and Stéphane Soussan (right), respectively senior portfolio manager Natural Resources & Gold and senior portfolio manager Natural Resources, Energy, Agriculture at CPR Asset Management, their current views on the commodities sector.

How have resources stocks been performing so far this year? What is driving the current outperformance of commodities?
Global resources stocks have performed well so far this year with a special mention for gold equities, rocketing by more than 70% ($) in average YTD, despite the significant consolidation we have observed since summer. Energy and other materials have not been too bad with a 20% ($) positive performance. Natural resources environment has significantly improved in recent months, resulting from the significant upward revisions of the consensus. The valuation remains reasonable at this point. Negative interest rate generalisation has been the main trigger for gold. The Brexit had little effect for the moment, but should not impact significantly the theme, very global structurally. Concerns around China have been dispelled, and contributed to the trend, especially for industrial metals. The surprise OPEC in Algiers decision offers more positive prospects for the oil market and has established a floor for prices...

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