Close: London Session | Forex, Metals, Oil, Agriculture March 09, 2021



The Budget sprang a surprise by imposing on imported cotton a five per cent basic customs duty plus a five per cent Agriculture Infrastructure Development Cess. A nuanced yet matured approach on the part of New Delhi would be to engage with the user industry to explore ways to enhance ELS cotton production in India. The pre-existing 10 percentage point Social Welfare Cess continues, taking the aggregate duty burden to 11 per cent ad valorem on cotton.
The user industry has expressed serious concerns over the viability of exports covering cotton yarn, fabrics, made-ups and garments. The app I m on is called Capital Coffee and was created by financial data provider JingData in less than 10 days. Some even borrow the name: I ve come across Clubhorse, Clubchat and Clubtalk.Back on Capital Coffee, I haven t managed to always find topics that interest me. Mish on Coffee and Sugar Exchange less Dax hits fresh all time high.


In global markets, gold prices edged higher but gains were capped amid a stronger US dollar and higher US Treasury yields. Gold to a fresh 9 month low on Monday as the US Dollar bounced higher hitting a 3.5 month high on an upbeat economic outlook (GLD, UUP). Investors have a voracious appetite for U.S. dollars this month as the Dollar Index climbed to its strongest level in four months. The dollar continued to advance across the board after Friday’s upbeat US jobs report and rising Treasury yields.
Markets riseThe surge in tech stocks and a weaker dollar are helping push global equity gauges higher. In Asian trading, the dollar has been on the back foot against the euro and the pound. A small amount of money can “control” the underlying asset and allow you to profit by almost the same dollar amount as buying the underlying asset. Also, the U.S. dollar held strong, gaining across the board, both against developed and emerging markets currencies.
Tuesday’s moves veered back to risk-on, with the dollar weakening and stocks from Asia and Europe also notching gains. That has been a combination of a rising US Dollar and longer-term Treasury yields, as expected.


Market participants were also tracking Tata Steel’s share price and Tata Steel PP share price. On MCX, gold futures were up 0.3% to Rs 44,360 per 10 grams, after falling to Rs 44,150 in the previous session. Bullish sentiment in the stock markets could cap any upside for gold as global risk sentiment remains well supported by optimism surrounding a solid economic recovery. Gold prices are trading up by 0.4% at Rs 44,390 per 10 grams. LEARN MORE 2:54 Share Tweet Post Email Gold remains inert to President Biden’s large and hazardous economic plan, and ended up dropping below $1,700.
Being more than a one day occurence, supported by yesterday presented big picture signals, the market confirmed my yesterday‘s suggestion of an upcoming gold. less Silver and gold prices started off the week on a pessimistic note, extending declines from Friday on a similar fundamental theme. Gold market offered proof of being finally ready for a rebound, and it‘s visible in the closing prices of the yellow metal and its miners.
less We analyze Gold’s historical cup and handle patterns and historical corrections in bull markets and apply those to the current market. He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market.


Morgan Stanley economists estimate that oil would need to average $85 a barrel for the global oil burden to rise above longer-term averages. Saudi oil production has not been impacted following an attack on the kingdom s oil infrastructure. With oil and gas prices soaring in February, consumer price growth could beat the market’s 0.3% forecast. India, hit hard by the soaring oil prices, has urged producers to ease output cuts and help the global economic recovery.
Platts reported that we saw refinery run losses of 70 million barrels with oil production of 20 to 25 million barrels. The global oil company first shared its plans for the new hybrid model with staffers last month, according to the report.
Oil and food costs are both bubbling, though as the two most volatile categories of consumer prices they’re easier for policy makers to look past as transitory. Daily Market Update identifies accurate price targets and turning points for indices, forex, cryptocurrencies, commodities, oil, gas, and stocks. Meanwhile, crude oil prices experienced a volatile Monday. BP announced last October it would shut the loss-making Kwinana plant, capable of processing 146,000 barrels per day (bpd) of oil, and turn it into a fuel import terminal.

United States

Currently S&P futures are trading at 3,854, up 35 points, Dow futures are trading at 31,889, up 113 points and Nasdaq futures are trading at 12,545, up 248 points. The tech heavy index Nasdaq 100 (QQQ) sold off through the day, which is showing a shift from growth stocks into value stocks as yields rose rapidly. Tech shares Speaking of repricing, this morning is seeing a bounce in tech shares after yesterday’s selloff sent the Nasdaq 100 Index down 11% from its Feb. 12 record.
For example, while the Dow Jones index made a new all-time high, the Nasdaq 100, the tech index, continued its correction a week or so ago. The US benchmark bond yields hovered around a 12-month high on concerns that the government’s massive stimulus package will stoke inflation. The Fed could reduce bond purchases to raise the Treasury benchmark enough to create positive inflation-adjusted yields for investors in corporate, mortgage, and state and municipal bonds.
But analysts noted that five-year inflation expectations were even higher, above 2.5%, indicating investors expect Fed intervention at some point to dampen rising prices. But for now, there are still many underlying forces pushing up rates: a quickening economy, inflation concerns and expectations of future Fed tapering. Here’s Milton Friedman in 1997 in the Wall Street Journal:Initially, higher monetary growth would reduce short-term interest rates even further. US stock futures are trading higher today, indicating a positive opening for Wall Street.


But the Beijing government soon blocked access to the app, giving it the same treatment as other foreign internet products like Gmail, Facebook and Twitter. The move, meant to bolster Beijing’s power, may wind up undermining the government’s economic masterplan. Global Headlines Cooperation snag | President Xi Jinping has ambitious plans to turn China into a digital powerhouse.


The ECB governing council meets this week and investors will be watching for any signs that the central bank will step up the pace of its bond purchases. The upcoming ECB meeting on March 11 comes on the backdrop of rising bond yields in the old continent – something the bank is eager to curb. Russian Shot to Be Made in Italy in First EU Deal It marks the first European production agreement for the Sputnik V vaccine. Between slow vaccine rollout, lengthy lockdowns and rising yields, the ECB has plenty to worry about.
Cross-border transactions remain unlikely without long-stalled EU-level reform, but there have been some domestic deals lately: Italian Intesa Sanpaolo bought UBI last year and Spanish CaixaBank is acquiring Bankia. On the other hand, judging by the weekly PEPP data revealed yesterday, the ECB did not step up the bond-buying. The vaccine is still under review for approval at the EMA and currently, the EU holds no agreements of deliveries of Sputnik.
The market participants, therefore, have time to prepare for the ECB meeting on Thursday, the key event of the week. This will apply to all asset managers that raise money in the EU, whether they are based within its borders or not, from March 10. Until then, it is worth mentioning that the ECB has sent some mixed messages lately.