Close: London Session | Forex, Metals, Oil, Agriculture July 31, 2020

Agriculture

Waves of pain | As harvests get under way across Europe, a season of droughts and floods have taken their toll on the continent s wheat crop. The president named Hamed Bakayoko as the new prime minister of the world’s biggest cocoa producer. A product the size of a sugar packet could be part of the solution. Despite an announcement made by the Government for a quota of 20.50 lakh tonnes for August, sugar prices remained steady. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,322-3,382 and M-grade 3,410-3,580.
Michael McKoy at the Monkey Cage on Tom Cotton, Martin Luther King and patriotism.

Currencies

The dollar index fell, while gold gained as investors sought refuge in the precious metal. The U.S. dollar index fell, while gold gained as investors sought refuge in the precious metal. A stock that cost $1 dollar in 2010 and made $1 in profit costs $10 today, but still makes $1 in profit. The main catalyst behind the continued rise in gold prices has been the consistent sell-off in the US dollar. The dollar strengthened mildly but it was nothing more than very tepid profit-taking as investor sentiment continues to be very negative against the greenback.
The Pound is trading at fresh 4.5 months highs versus the USD on Dollar weakness. The Federal Reserve currently allows buying risky assets as they continue to flood the markets with money, devaluing the US dollar. Optimism about progress in talks between Republicans and Democrats may help the dollar – but investors will believe it when they see it. At the time of the interview, the dollar index was just a few ticks off its March low.
Technical indicators of the currency pair: The US dollar continues to lose ground against its main competitors.

Metals

31, 2020 9:37 AM ET|| About: Centerra Gold Inc. (CAGDF)by: SA TranscriptsThe following slide deck was published by Centerra Gold Inc. in conjunction with their 2020 Q2 earnings call. Gold and interest rates are ringing alarms and providing profits for bond holders and gold bugs, reminiscent of the Great Depression. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored.
The slight reversal in sentiment in risk assets has been exacerbated in silver prices compared with gold. The gold and silver mining stocks are killing it, but they’re just getting started. If you believe silver is manipulated and should be $50-$100, then stop watching the silver price ticker… LOL. Number one, yeah, own gold and silver. Investors can also consider allocations to gold, which tends to be a resilient asset and has delivered diversification in many past recessions and periods of high macro uncertainty.
A sporadic uptick in tensions could likely see gold continue to derive safe-haven support in the near term. Thus, do not complain that technical analysis is useless in a “Rigged” market if you are going to WATCH the silver price movement every day or throughout the day.

Oil

The Brazilian state-run oil firm on Thursday posted a loss of 2.7 billion reais in the second quarter, hurt by tumbling oil prices despite record export volumes to China. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. The short-term ProShares Ultra Bloomberg Natural Gas product (BOIL) provides market participants with double leverage on the upside in the natural gas futures arena.
The plunge in energy prices negatively impacted MLPs, because the majority of companies structured as MLPs transport and store oil and natural gas.
While the last thing that is on anyone’s mind is a shortage of oil or natural gas, the groundwork is being laid for a very tight energy market. OPEC plus is going to rollback cuts and add 1.5 million barrels of oil to the global oil market starting August 1. Natural gas is a cleaner fuel than crude oil, but it is still a hydrocarbon. Crude Value Insights offers you an investing service and community focused on oil and natural gas. A quarter ago, it was expected that this oil company would post earnings of $0.64 per share when it actually produced earnings of $1.29, delivering a surprise of 101.56%.
As such, their fortunes aren’t as subject to the ups and downs of oil and gas prices.

United States

While the tech-heavy Nasdaq had run higher, driven by investor mania for internet-related stocks, it was still worth less than the combined market capitalization of a pan-European stock index. President Donald Trump’s suggestion that November’s election could be delayed until after the Covid-19 pandemic eases is meeting with fresh skepticism, even within his own party. Although export volumes remain relatively high into the first few weeks of August, the market is facing growing concerns over rising coronavirus cases in Europe and the US.
They reduce the balance of MBS on the Fed’s balance sheet, and the Fed has to buy large amounts of MBS just to keep the balance level. Recent data from the NY Fed Weekly Economic Index shows a flattening of activity since the first week of July. Still, the current 41% remains well below the 49% earlier this year when the economy was in good shape, and Trump was enjoying a post-impeachment bounce. One source said that localised data on infection rates was being monitored “constantly” to watch for flare-ups and plans will be amended as the situation develops.
European shares rose after bumper earnings from Wall Street’s big tech names and Nokia eased investors’ nerves. China rejects charges that hackers linked to its government targeted Moderna (NASDAQ:MRNA) to steal data related to research on a coronavirus vaccine. We scour the US and world markets to find solid income opportunities with dividend yields ranging from 5% to 10%-plus, backed by strong earnings.

China

Downing Street later said Britain would continue to have a constructive relationship with Chinese companies, but warned Beijing its relationship with the UK “does not come at any price”. GT often serves as an unofficial foreign policy arm of Beijing signaling the communist government’s intent and messages to the West. Lam said she was invoking the Emergency Regulations Ordinance in doing so, Beijing supports canceling September’s legislative elections? But Beijing was never going to risk an embarrassing electoral defeat in the LegCo.

Europe

“There was nothing in the prime minister’s speech for the 3.2 million people in hospitality, or the 2.9 million in retail,” the Labour leader told Boris Johnson. Boris Johnson put the brakes on easing lockdown, saying a resurgence of the disease across the country must be stamped out. Boris Johnson announced on Friday he would delay lifting more lockdown restrictions as positive cases of Covid-19 rose across England. Sir Keir Starmer has accused Boris Johnson in the House of Commons of being “blind to the risks” of easing the coronavirus lockdown.
Pro-Brexit supporters celebrating in Parliament Square, after the UK left the European Union on 31 January. News > UK > UK Politics The wearing of face coverings will become mandatory in cinemas, museums, and places of worship from next weekend, Boris Johnson has announced. Last night, we reported that UK PM Boris Johnson had ordered a large swath of northern England to return to ‘partial’ lockdown status.
Both sides this month agreed to intensify the schedule of discussions, but issues like fishing rights, EU regulations, governance, and police cooperation and proving to be major sticking points.
This is the only card Boris Johnson can play, and thus it is guaranteed that it will now be played multiple times, week after week from here to evermore. Alstom’s chairman and CEO Henri Poupart-Lafarge expressed optimism over the outcome of talks with European Union regulators, expected later in the day, over its acquisition of Bombardier’s rail business.

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