Close: London Session | Forex, Metals, Oil, Agriculture January 15, 2021



Still deciding | Mexican officials will meet with producers along the supply chain to decide on whether a new ban on genetically modified corn will apply to animal feed. Coffee boost | President Xi Jinping called on Starbucks to help improve China-U.S. ties, striking a business-friendly tone as the Biden administration prepares to take over in Washington. Pakistan is trying to tame the fastest inflation in Asia by importing tons of grains and sugar.


EM equities have a strong negative relationship with the dollar, and additional fiscal stimulus measures from Congress may have the effect of further dollar weakness in a reflationary environment. A few reasons: A sinking U.S. dollar: The dollar has continued on the slide that started when global risk appetite rose from the grave in March. Israel’s benchmark TA-125 stock index has gained nearly 6% this year in dollar terms, outperforming both the S&P 500 and the eurozone’s Euro Stoxx Index.
Investors have even higher expectations for LSE: Its stock changes hands for 37 times, having risen almost 150% in dollar terms over three years. Risk aversion bets pushed the dollar higher against a basket of currencies. Risk aversion bets pushed the U.S. dollar higher against a basket of currencies. Another interesting thing is that the JPY strength against the dollar comes at a time of Nikkei 225 index outperforming. Last year, the TA-125 didn’t fare as well as either of those gauges, rising just 4.3% in dollar terms.
On Friday, continue their decline and may push the dollar lower. less The dollar had a choppy session on Thursday.


Well, if copper succeeds in breaking above this band of resistance, it will likely mean blast off for copper and copper stocks like Freeport McMoran (FCX). It also shows Copper futures prices hitting a significant band of triple resistance this month. That has sparked the rally in metals, pushing up copper 25% in the last six months as part of a vast rise in riskier markets. China is the world’s largest commodity consumer by far and is responsible for about half of global demand for copper and other metals.
Copper and other raw materials such as zinc and aluminum are the building blocks of construction, used to manufacture everything from computers to houses. Breakeven yields and gold both climbed after Fed chair Powell said policy makers won’t raise interest rates unless they see troubling signs of inflation. Continuous coronavirus infections, civil unrest, and the impending US stimulus, combined with a slow rollout of vaccinations have kept gold consolidated.
S&P 500 futures pointed to a small drop at the open, the 10-year Treasury yield was at 1.114%, oil was lower and gold gained. We hear a lot about gold and silver, but how about copper? Gold prices idled in choppy range confining them all week.


CRUDE OIL TECHNICAL ANALYSIS Crude oil prices are testing resistance just below the $54/bbl figure, marked by the 50% Fibonacci expansion. Oil minister said Iraq is in “heavy talks” with OPEC and allied oil producers to allow Iraq to postpone compensating for earlier overproduction. BEFORE THE BELL Futures for Canada s main stock index dropped, as oil prices fell on demand concerns fueled by surging coronavirus cases. Crude oil prices rose yesterday, shrugging off souring risk appetite across broader financial markets that might have been expected to weigh on the cyclically-sensitive commodity.
Bellwether S&P 500 futures are pointing convincingly lower and crude oil prices are following suit having seemingly recoupled with overall sentiment trends. Oil prices dropped as surging virus cases fuelled demand concerns. On the sectoral front, IT stocks, realty stocks, and oil & gas stocks were among the hardest hit. Also serving as a catalyst for rising prices are rumors of a tightening of supply, after Saudi Arabia’s move to pump less oil for February.
Gunvor won the rights to lift 9 million tonnes of Rosneft’s oil products, the sources said.
British Airways operator International Airlines Group and Italian oil company Eni each claim they ll offset 30 million metric tons per year by then.

United States

US stock futures are trading lower today indicating a negative start for Wall Street indices. The timing of the impeachment trial of President Donald Trump could add another road block to a swift agreement on new stimulus. Paid Post There’s a reason over 2.5 million people start their day with Morning Brew the daily email that delivers the latest news from Wall Street to Silicon Valley. But, although it got little fanfare, ex-state-owned enterprises in emerging markets (EM) managed to outmuscle even the formidable NASDAQ 100 following the market’s rock bottom in March.
The arbitrage remains workable on paper however is under pressure by two-consecutive weeks of stock builds in the US as the pandemic continues to pressure demand. Companies hire Wall Street to “market” for them so that their stock prices will rise and with executive pay tied to stock-based compensation you can understand their desire. The effort is the latest pressure on Facebook, Twitter and Alphabet over extreme rhetoric after the storming of the U.S. Capitol last week by supporters of President Donald Trump.
It also marks one of the last actions from President Donald Trump’s EPA before he leaves office on Jan. 20. Note that the Russell 2000 is up about 3% for the week coming into today, and it too has fallen in only one week since the US election. The Fed moved heaven and earth to save the economy last winter as it teetered on the edge of oblivion.


That means Biden will need to engage with Beijing, even as he too pressures it to change.


The ECB will meet on Thursday with eyes on how Lagarde rhetorically tackles the internal differences that were fairly material according to the recent meeting minutes. In Germany, Angela Merkel is pushing to further tighten the country’s lockdown as deaths there rose by a record amount in the past 24 hours. In the UK, Prime Minister Boris Johnson is under pressure from a group of right-wing Conservative Party members who want him to loosen lockdown measures.
Will Lagarde emphasise that the PEPP wallet is not a target but rather only a backstop and will she succeed in doing so? Who will (potentially) succeed Angela “Mutti” Merkel as the German chancellor? Brexit is driving top dealmakers out of London. This is the key task for Lagarde.