Close: London Session | Forex, Metals, Oil, Agriculture December 17, 2020



Sugar stocks were in focus today after the Union Cabinet approved Rs 35-billion sugar export subsidy. Shares of Balrampur Chini, Triveni Engineering Industries, Uttam Sugar Mills, Dhampur Sugar Mills, Shree Renuka Sugars, EID Parry (India), and Dwarikesh Sugar Industries gained in the range of 3-5%. After acquiring Costa Coffee in 2019, Coca-Cola has realised how lucrative the coffee market is. Consequently, the company is launching ”Coca-Cola With Coffee’, which combines regular Coke with Brazilian coffee.


Here’s a plot of the trade-weighted US dollar in nominal terms, shown so that a movement upward is a dollar depreciation. Axi’s chief global market strategist Stephen Innes added that inflation would push the dollar lower and gold higher. One key finding is that, given the dollar’s (and to some extent, the euro’s) international dominance, to date, any shifts in central bank reserve holdings have been minimal. Nominal trade-weighted dollar exchange rate at end of period (black, left log scale, up is a depreciation), and M2 to real GDP (blue, right log scale).
This would suggest that, as long as the dollar continues to dominate global finance and trade, its dominance as a reserve currency looks set to endure. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The dollar is extending its recent decline after most Fed officials yesterday projected interest rates will stay near zero for at least three years.
less Dollar down across the board (UDN) Equities higher in post Powell bump Nikkei 0.18% Dax 0.62% UST 10Y 0.92 (SPTL) Oil $48 (OIL) Gold $1873/oz. The general risk-on mood sent the U.S. dollar lower, whereas gold prices rose. The general risk-on mood sent the dollar lower, whereas gold prices gained.


The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. We also discuss the cross-currents that are truly the drivers for gold and gold stocks. less The prices of gold climbed to a new one-week high today as U.S. congressional leaders inch closer to an agreement on the COVID-19 stimulus bill. Anti-fiat gold prices also rallied over the past 24 hours, particularly enjoying the last FOMC monetary policy announcement of the year.
Don’t be shocked if gold prices make a strong move toward $3,000 per ounce in 2021. Gold prices are trading up 0.6% at Rs 49,887 per 10 grams. Gold prices today maintained their upward momentum in hopes of a breakthrough in US stimulus talks. Now that gold prices are falling, you hear very little about them – in favor of the increasingly ridiculous BOND ROUT!!!! resurrected by this Inflation Hysteria #2 which suddenly can’t include rising gold prices.
On MCX, February gold futures rose 0.3% to Rs 49,770 per 10 grams, extending gains to the third day.


BEFORE THE BELL Canada’s main stock index futures rose as oil prices hit a nine-month high after government data showed a fall in U.S. crude stockpiles last week. Oil prices hit a nine-month high after government data showed a fall in U.S. crude stockpiles last week. less Oil prices hit a new nine-month high as Asian oil demand is exploding, and the Fed is saying they still have our back. WTI crude oil prices are extending gains beyond 46.24, the former resistance level that held persistently last week.
Brent crude futures, the global oil benchmark, rose 0.74 per cent to USD 51.46 per barrel. less Crude oil prices aimed higher on Wednesday, propelled by the latest EIA inventory report. The recent crude oil moves seemed to foreshadow what the Fed said yesterday about the U.S. economy and jobs market. Oil (OIL) is bid as well. While European Big Oil has made strides in addressing its gender imbalance at the top, in rival trading houses there remains a stark absence of women in executive roles.
Metal stocks and oil & gas stocks, on the other hand, witnessed selling pressure.

United States

Bond buying by the Fed has an indirect influence on stock prices, as it pushes up bond prices and suppresses bond yields, which drives investors towards equities. The Federal Reserve intends to continue buying Treasury bonds and mortgage-backed securities to help keep long-term bond rates low, according to news reports on the Fed’s latest statement. Wall Street futures gained on hopes of a U.S. fiscal stimulus and the Federal Reserve’s pledge to keep pumping cash into markets.
The company is still under an asset cap since February 2018 and management expects the Fed to keep the cap in place for a while longer. BEFORE THE BELL Wall Street futures rose on hopes of a U.S. fiscal stimulus and the Federal Reserve’s pledge to keep pumping cash into markets. Nasdaq Futures are trading up by 40 points (up 0.3%) while Dow Futures are trading up by 86 points (up 0.3%). Nasdaq Futures are trading up by 66 points (up 0.5%), while Dow Futures are trading up by 137 points (up 0.5%).
US stock futures are trading higher today, indicating a positive opening for Wall Street indices. US stock futures are trading higher today, indicating a positive start for Wall Street indices. Photographer: Victor J. Blue/BloombergThe New York Stock Exchange, Nasdaq s biggest rival, said exchange rules shouldn t be used to make changes that limit investors choices.


navy ships and fighter jets come into close proximity quite regularly with patrols from China, as Beijing builds military bases on reclaimed reefs. “China is very serious about achieving this goal,” she said, citing President Xi Jinping’s personal endorsement.


The U.K. and EU are heading for a final battle over fishing rights as Brexit talks reach a climax, with officials cautiously predicting a trade deal within days. The European Union has concluded preliminary talks with the company to secure up to 200 million doses of its COVID-19 vaccine candidate, a Commission spokesman said. European Commission President Ursula von der Leyen said Britain and the European Union moved closer to a new trade deal, but two issues remain unsolved.
The extra 100 million doses would be supplied at the same price, but with the timetable to be negotiated, EU officials said. The pound is trending higher on expectations that a Brexit trade deal could still be in the cards. British Prime Minister Boris Johnson said he hoped the union would support a deal that respected Britain’s sovereignty. Brexit talks are ongoing with Barnier noting that talks are showing good progress. The episode followed reports of a handful of similar reactions in the U.K.The vaccine distribution program is still working out the kinks.
Some of that activity will have to move after the end of this year, when transitional arrangements agreed at the time of Britain’s departure from the European Union expire. Global Headlines Macron infected | French President Emmanuel Macron has become the latest leader to test positive for Covid-19.