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(ANDREW KELLY/REUTERS)

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Equity-commodity correlation on track to tighten

The often close correlation between equity and commodity prices has faded. World equities are up 15 per cent since August while commodities have barely moved. Is this a paradigm shift? Probably not, though shale gas is rattling energy markets. Equities may simply have run too fast on the back of quantitative easing while commodity investors have hesitated over global growth worries.