Agriculture
Walt Hagood, who grows cotton on 3,500 acres in the western part of the state near Lubbock, said drought has reduced his yield by about a third this year. Conversely, last year the Nasdaq Stock Market forced China’s Luckin Coffee Inc. to delist after an accounting scandal. The International Cotton Advisory Committee last month trimmed its estimates for the global harvest by about 1%. UCHI is the largest producer of coffee-maker modules, which is the control center of coffee machines, in the world.
The weather in Texas—the country’s top cotton-producing state—has been especially challenging for farmers.
The weather in Texas—the country’s top cotton-producing state—has been especially challenging for farmers.
Currencies
In global markets, gold prices rose to near two-month highs, supported by a weak dollar and concerns about a surge in new coronavirus cases around the world. FOREX: The U.S. dollar held near mid-2018 lows as bullish sentiment across global markets prompted investors to buy riskier currencies such as the Chinese yuan, despite a resurgent pandemic. Increased appetite for riskier assets pushed the dollar to near mid-2018 lows, while gold surged. Increased appetite for riskier assets pushed the U.S. dollar to near mid-2018 lows, while gold surged.
The yellow metal was also supported by the weak U.S. dollar that made the bullion less expensive and more attractive to investors using other currencies. The US Dollar index fell to a two-and-half year low of 89.65 and looked set to continue its downward trajectory amid a viral resurgence and ample liquidity. However, the dollar dropped, boosting commodities and related stocks.The MSCI All-Country World Equity Index, which covers 40 countries, jumped almost half a percent to a record high.
Gold has rallied in the wake of the dollar’s slide (and crypto gains), and near $1935, it is at a two-month high. Figure 2 – U.S. Dollar Index In this week’s early trading, the USDX moved lower, almost back to the 2020 lows. The safe-haven dollar renews its slide that typified late 2020 as investors look beyond the current coronavirus crisis (FXE, UDN).
The yellow metal was also supported by the weak U.S. dollar that made the bullion less expensive and more attractive to investors using other currencies. The US Dollar index fell to a two-and-half year low of 89.65 and looked set to continue its downward trajectory amid a viral resurgence and ample liquidity. However, the dollar dropped, boosting commodities and related stocks.The MSCI All-Country World Equity Index, which covers 40 countries, jumped almost half a percent to a record high.
Gold has rallied in the wake of the dollar’s slide (and crypto gains), and near $1935, it is at a two-month high. Figure 2 – U.S. Dollar Index In this week’s early trading, the USDX moved lower, almost back to the 2020 lows. The safe-haven dollar renews its slide that typified late 2020 as investors look beyond the current coronavirus crisis (FXE, UDN).
Metals
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Moreover, the 2018 USDX bottom also marked the 2018 top in gold, silver, and the gold miners (depicted in the below). Gold prices, alongside cryptocurrencies, appear to be riding the tailwind of stimulus and a seemingly broad consensus that central banks will largely stay accommodative as the pandemic worsens. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
One is that gold and silver won’t rise much because big banks like JP Morgan will cap it by dumping onto the paper market. A return to normal would require a loose monetary policy that would still make gold more attractive as an insurance asset, he added. Tracking similar global trends, gold prices surged today in Indian markets. Note that gold prices have been trading in a very narrow range over the past two weeks.
The other is that Cryptos are “stealing gold’s thunder” and siphoning off funds that would otherwise go into the Precious Metals. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools.
One is that gold and silver won’t rise much because big banks like JP Morgan will cap it by dumping onto the paper market. A return to normal would require a loose monetary policy that would still make gold more attractive as an insurance asset, he added. Tracking similar global trends, gold prices surged today in Indian markets. Note that gold prices have been trading in a very narrow range over the past two weeks.
The other is that Cryptos are “stealing gold’s thunder” and siphoning off funds that would otherwise go into the Precious Metals. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools.
Oil
Oil prices are the highest since March on reports that OPEC plus will show restraint and not increase oil output like the market was expecting. Russian oil and gas condensate output declined to 10.27 million barrels per day (bpd) last year, according to energy ministry data cited by the Interfax news agency. Oil prices are firm as OIPEC+ meets to consider February output after increasing output by 500k barrels a day this month.WTI is near $50 a barrel. Saudi seaborne crude exports for last week were seen at 35.8 million bbl (5.1 million bpd) compared to the revised 49.3 million bbl (7.0 million bpd) the week prior.
Oil prices rose on expectations that OPEC+ will cap production at current levels in February.
The poll of 39 economists and analysts conducted in the second half of December forecast Brent crude prices would average $50.67 per barrel next year. Weekly Iraqi crude exports went up 2.4 million bbl to 22.7 million bbl (3.2 million bpd). less Oil is advancing, hitting a fresh multi month high as OPEC is expected to keep production capped. less The crude oil market is breaking out and commodities are hot!
There is some thought that President Trump will expand the efforts, and there is some speculation that oil companies may be next.
Oil prices rose on expectations that OPEC+ will cap production at current levels in February.
The poll of 39 economists and analysts conducted in the second half of December forecast Brent crude prices would average $50.67 per barrel next year. Weekly Iraqi crude exports went up 2.4 million bbl to 22.7 million bbl (3.2 million bpd). less Oil is advancing, hitting a fresh multi month high as OPEC is expected to keep production capped. less The crude oil market is breaking out and commodities are hot!
There is some thought that President Trump will expand the efforts, and there is some speculation that oil companies may be next.
United States
The S&P 500 index, which tracks the U.S. stock market broadly, rose over 15% last year and the tech-heavy Nasdaq index surged nearly 43%. Last week, President Donald Trump signed US$ 2.3 trillion US stimulus package that includes US$ 900 billion in Covid-relief aid and a US$ 1.4 trillion in general government spending. less In the later stages of a bull market advance, the financial media and Wall Street analysts start seeking out rationalizations to support their bullish views.
Pinchas Cohen/Investing.com Follow Futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European stocks rose Monday, the first day of 2021 trading, on renewed optimism. Futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European stocks rose Monday, the first day of 2021 trading, on renewed optimism. less This is one of my favorite posts to write every year as we get to look back on Wall Street predictions and see how they panned out. Fed Chairman Jerome Powell has repeatedly called on the central bank to address inequality…but the irony is, the Fed is one of the progenitors of economic inequality.
US stock futures are trading higher today indicating a positive opening for Wall Street indices. Image Source: Pixabay Last year saw the largest expansion in the US monetary base in history. )Here are the biggest calls on Wall Street on Monday: European equities start the year on a strong positive note following gains in Asia overnight.
Pinchas Cohen/Investing.com Follow Futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European stocks rose Monday, the first day of 2021 trading, on renewed optimism. Futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European stocks rose Monday, the first day of 2021 trading, on renewed optimism. less This is one of my favorite posts to write every year as we get to look back on Wall Street predictions and see how they panned out. Fed Chairman Jerome Powell has repeatedly called on the central bank to address inequality…but the irony is, the Fed is one of the progenitors of economic inequality.
US stock futures are trading higher today indicating a positive opening for Wall Street indices. Image Source: Pixabay Last year saw the largest expansion in the US monetary base in history. )Here are the biggest calls on Wall Street on Monday: European equities start the year on a strong positive note following gains in Asia overnight.
China
WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient. Their aim: to engineer a society loyal to Beijing.
Europe
Prime Minister Boris Johnson warned that tougher restrictions may be on the way and is under pressure to close all schools in England. Prime Minister Boris Johnson has been urged to announce a , putting the whole country on the highest Tier 4 restrictions – or even new Tier 5 ones. A suave resolution to Brexit is also a positive factor in equity markets as we start the new year given that it avoids further uncertainty. The supermarket sticker shock threatened by a no-deal Brexit has been averted, but British shoppers may still find prices creeping higher.
GBP/US has flirted with 1.37 as investors continue pushing the pound higher after the EU and the UK reached a Brexit deal on Christmas Eve. The UK’s position was dictated by the populist prime minister Boris Johnson, a relentless critic of the European Court of Justice, which according to him, created massive red tape. The second objective then was damage control – to minimize the impact of Brexit on the economies of the EU member states.
The British team hadn’t negotiated a trade agreement since joining the EU back in the 1970s.
The ECB has slowly expanded available cash through the year and is expected to continue. The loss of Britain as a large contributing partner had been already happened four years ago with the Brexit vote.
0 GBP/US has flirted with 1.37 as investors continue pushing the pound higher after the EU and the UK reached a Brexit deal on Christmas Eve. The UK’s position was dictated by the populist prime minister Boris Johnson, a relentless critic of the European Court of Justice, which according to him, created massive red tape. The second objective then was damage control – to minimize the impact of Brexit on the economies of the EU member states.
The British team hadn’t negotiated a trade agreement since joining the EU back in the 1970s.
The ECB has slowly expanded available cash through the year and is expected to continue. The loss of Britain as a large contributing partner had been already happened four years ago with the Brexit vote.
