Week in Review: We examine the latest developments in commodity markets.

Commodities rose across the board this week amid strong economic data and new highs in the stock market. The S&P 500 advanced less than 1 percent to reach its highest level since December 2007. The index is now up 3.8 percent year-to-date. 

Macroeconomic Highlights

This week’s big macro news came from China, where the economy grew by 7.9 percent year-over-year in the fourth quarter, up from 7.4 percent in the third quarter and above the 7.8 percent that analysts were expecting.

Other China data were also positive. Industrial production in the country grew by 10.3 percent year-over-year in December, up from 10.1 percent in November, while retail sales rose by 15.2 percent in December, up from 14.9 percent in the prior month.

Meanwhile, data in the U.S. continued to be encouraging. The Department of Labor said the number of people filing for unemployment benefits plunged from 372K to 335K last week, the lowest level since January 2008.

Housing starts in December jumped 12.1 percent to 954K, the highest level since June 2008. Building permits edged up by 0.3 percent to 903K, the best level since July 2008.

Finally, according to the Census Bureau, retail sales in the month of December rose by 0.5 percent, above the 0.2 percent gain that was expected. Additionally, November’s sales growth was revised higher to 0.4 percent.

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