Close: London Session | Forex, Metals, Oil, Agriculture May 18, 2021



Liquidity problem | Brazil, the world s biggest exporter of coffee, sugar and orange juice, just had a rainy season that brought hardly any rain, threatening the global supply. Coffee is one of the commodities the world economy is running low on, per Bloomberg. Coincidentally, one of those exchange-traded products, the iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO) was one of our system’s top ten names on Monday. Corn, coffee, wheat and soybeans.


The US dollar falling could also come into play, so I think that could also be a reason why oil will continue to rise. The rupee started on a flat to stronger note against the dollar, tracking the weakness of the greenback, Reliance Securities said in a research note. BEFORE THE BELL Wall Street futures rose, and the dollar dipped on renewed expectations of the Federal Reserve not hiking interest rates anytime soon. Wall Street futures rose and the U.S. dollar dipped on renewed expectations of the Federal Reserve not hiking interest rates anytime soon.
At the interbank foreign exchange, the domestic unit opened at 73.18 against the dollar, then inched 7 paise higher to 73.15 against the American currency. Each has increased less than 0.5% over the past three months.Still, the Canadian dollar has surged almost 5% as the central bank signaled it may dial back stimulus. Most of the Asian currencies are trading stronger against the dollar and could lent support, the note added.
Gold prices also tracked higher in tandem, while the US Dollar wilted. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 90.11. It seems that the answer is no, as the pound has plenty of reasons to rise while the dollar has reasons to tumble down.


One, if China continues to stimulate steel demand and its production stays higher, iron ore demand will remain at higher levels. Australian ore exports make up 61 per cent of total Chinese iron ore purchases. The London-based analyst firm said that Chinese demand for iron ore has been robust after the Covid-19 outbreak in early-2020. Chinese factor China is the largest consumer of iron ore, importing nearly 70 per cent of the global shipments. This is where analysts and experts feel that sooner or later, iron ore prices could come under pressure.
Till April, China’s steel production was 375 million tonnes (mt), up 16 per cent compared with the year-ago period. Copper, iron ore and steel. In gold’s case, the critical points this year were the mid-to-high $1,700 (breached finally in the last fortnight) and the $1,880 to immediate $1,900 levels open now. According to the National Bureau of Statistics, China’s steel production last month was a record 97.85 million tonnes.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund (ETF), said its holdings rose 0.7% to 1,035.93 tonnes on Monday from 1,028.36 tonnes in the prior session.


Global oil benchmark Brent crude futures rose 0.35 per cent to $69.70 per barrel. less Image Source: Pixabay Crude oil prices surged to a 2-year high and that may be only the beginning if the International Energy Agency (IEA) gets its way. Crude oil prices rose in a move that the newswires tied to a brighter demand outlook. BEFORE THE BELL Futures for Canada’s main stock index rose as oil prices gained on optimism of a demand recovery after the reopening of the U.S. and European economies.
Stop The International Energy Agency said the world needs to stop developing new oil and gas fields immediately to have any chance of reaching net-zero emissions by 2050. For oil traders, 2050 is obviously a long time away as they push the price of a barrel of Brent crude above $70 this morning. The world has a stark choice stop developing new oil, gas and coal fields today or face a dangerous rise in global temperatures. No fuel oil exports were observed from Iraq last week, the first such occurrence in the past six months, although export volumes from the country are subject to revisions.
Southeast Asia dominated the off-taker mix for Middle East fuel oil cargoes last week, with four cargoes signaling for Singapore and another for Malaysia.
Oil prices are also higher, with Brent testing $70 and July WTI probing $67.

United States

The company’s share price barely budged Monday—a contrast compared with the 7.5% jump last year after The Wall Street Journal reported that NextEra Energy had made a takeover approach. The U.S. Navy will request funding for eight new vessels in the next fiscal year budget, down from the 12 originally sought in a Trump administration blueprint. Indeed, on Thursday, Federal Reserve Governor Christopher Waller said that the Fed would need “several more months of data” before considering modifications to its stance.
However, it seems that the US central bank managed to convince the markets that it would remain dovish for a very long period and that . It might now seem counterintuitive, but traders worried that the jump in the CPI would force the Fed to tighten its monetary policy earlier than anticipated. Nasdaq Futures are trading up by 123 points (up 0.9%), while Dow Futures are trading up by 104 points (up 0.3%). Yesterday the S&P 500 closed down 11 points, at 4,163, the Dow closed down 54 points, at 34,328 and the Nasdaq Composite closed down 51 points, at 13,379.
Their Wall Street arms, which underwrite stock offerings and trade stocks, posted strong results in a roaring market. There are some politically motivated economists who believe the Fed should keep rates indefinitely low to save the poor by creating high employment. It had previously consolidated all of its issued and outstanding common shares on a 15-to-1 ratio to meet the minimum share price set by NASDAQ.


Trade spat | Hong Kong has closed its trade office in Taipei, the latest tit-for-tat exchange between the cities as Beijing works to isolate the democratically ruled island. Hong Kong has closed its trade office in Taipei, the latest tit-for-tat exchange between the cities as Beijing works to isolate democratically ruled Taiwan. The Beijing-based company said total revenue rose 25% to 28.13 billion yuan in the first quarter, boosted by non-advertising revenue growth of 70%.


We see some more upside potential for longer yields and spreads as signs of an economic recovery strengthen and the ECB reduces its support. In December last year the EU adopted its huge Next Generation EU recovery package (NGEU) worth EUR 750bn, of which a large part will be financed through joint loans. This has never happened before, and before the Recovery Fund can be set to work, the EU national parliaments must ratify the agreement. Even the Brexit front has seen some upbeat developments – Britain made new offers to resolve trade issues with Northern Ireland.
The ECB’s significantly higher bond purchase pace has not prevented yields and spreads from rising. Help wanted | The U.K. government is recruiting an external adviser to identify new opportunities created by Brexit. But the situation exposes the EU’s weaknesses in much the same way as the EU’s scandal-ridden vaccination programme has done. U.S. officials are also considering the issue, and the European Union has opted for its own standard-setting body.