Resources companies make a comeback

The global economic outlook remains hazy, with lingering uncertainty on the strength of the global recovery, particularly in the US and Europe. Fears of a double-dip recession and Japan-style deflation in the US and Europe are evident as the effects of countercyclical fiscal policy peters out and austerity programmes commence. Central Banks in many developed economies remain on stand-by to resume unorthodox monetary easing measures, and near-zero interest rates have increased investors’ appetite for yield, pushing many currencies higher in the process. Despite this cloudy backdrop emergi...