Close: London Session | Forex, Metals, Oil, Agriculture May 31, 2021



Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


The dollar index fell 0.1% against its rivals and made the yellow metal less expensive for investors using other currencies (GLD, UDN). SPI Asset Management’s managing partner Stephen Innes noted that the bullion currently draws its strength mainly from the weaker dollar and inflation fears. Among major currencies, the aussie dollar has been showing the strongest gains against the greenback today. The U.S. dollar was little changed against a basket of major currencies.
The dollar is little changed against the major currencies. Still, the Asian gauge is poised to gain more than 1% in May, in its second straight monthly advance as inflation concerns ease globally and the dollar weakens. less Gold prices rose again on Monday on lower U.S. bond yields and a weaker dollar. Outside of the Australian dollar, which is about 0.3% higher, around $0.7735, the other major currencies are +/- 0.15%. less The US dollar, which confounded most observers by appreciating in the first quarter, has fallen broadly in April and May.
That’s happening because the US dollar index is going down.


According to International Aluminium, an organisation of bauxite, alumina and aluminium producers, production last year was 65.29 mt against 63.65 mt in 2019. Fitch Solution sees aluminium prices remaining supported in the near-term on strong demand amidst supply concerns, which might ease later this year. During January-March this year, China’s primary aluminium production was on an average 6.3 per cent higher than the year-ago period. This year, aluminium prices have increased 26.5 per cent.
Secondary supply had to grow at a compounded annual growth rate of 5.8 per cent, which is higher than primary aluminium supply. Last week, they rose 6.6 per cent.UndersupplyPrices surged after Chinese aluminium imports increased 36 per cent in April. In international markets, gold prices were steady above the key US$ 1,900-level today after US consumer price data boosted the precious metal’s shine as an inflation hedge. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
Pixabay Also, the rising prices in the U.S. and the UK boosted the demand for gold since it is considered a hedge against inflation. In physical trading, gold demand in India remained low last week as most jewelry stores were still closed due to COVID-19 lockdowns.


Crude oil prices traded slightly higher during the Asia-Pacific mid-day session after registering a 4.3% gain last week. India s second COVID-19 wave continues to weigh on economic output and oil demand, although the country has seen a significant drop in the daily case count. Natural gas prices trended slightly upward last week despite the higher-than-expected inventory build. Ongoing nuclear talks between Iran and world powers are paving the way to remove some economic sanctions, including oil exports, on the Middle Eastern country.
This may unleash as much as 2 million bpd of additional supply on the global market, weighing on oil prices. Both the US and UK markets are shut for holidays on Monday, rendering oil prices vulnerable to heightened volatility if unexpected news hits the newswires amid poor liquidity conditions. The oil cartel is widely expected to stick with a decision to gradually boost output from May to July to meet rising global demand.
Total supply of natural gas averaged 96.7 Bcf per day, edging up 0.4% on a weekly basis due to an increase in dry production.
In addition, a 7.4% YoY decline in Chinese oil product consumption in April further weighed on energy prices. The energy-focused for example, has risen 48% this year thanks to a recovery in oil prices.

United States

less The Nasdaq 100 initially tried to rally during the trading session on Friday but gave back the initial gains as we continue to be rather flat. S&P 500 and Nasdaq 100 futures swung between small gains and losses amid shortened trading hours due to the Memorial Day holiday in the U.S. Inflation readings are coming in hotter than Fed officials expected and could accelerate when they debate scaling back their massive bond-buying. If inflation continues to rise, the Nasdaq 100 might not be the best place to put money, but it should be positive in general.
The US proposal for a 15% minimum corporate tax rate could be the basis of an agreement, and the first step is to reach a G7 consensus. The pair shot higher at the start of the month after reports that China was fed up with the constant rise in commodity prices. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.
The December 2022 Eurodollar futures contract has a 25 bp rate hike discounted more than a year before the majority of the Fed (11/18) thinks it will be appropriate. Tax reform and coordination have been stymied at the OECD in recent years, largely but not solely because of the US intransigence. He is an avid market watcher having followed capital markets in the US and India since 1993.


Beijing will allow all couples to have a third child in a bid to arrest an aging population and shrinking birthrate that threatens the country s long-term economic prospects.


Post-Brexit trade pacts | Australia and the U.K. continue to negotiate plans for a free-trade agreement, Trade Minister Dan Tehan said. Since mid-March, the ECB had stepped up its bond purchases, and there will be a vigorous debate at the June 10 meeting whether some reduction is in order. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching.
With headline inflation on the rise, the ECB’s attempt to avoid the taper conversation will become more and more complicated. The European Union’s fiscal initiative and budget have still not been ratified by all the members. Merkel isn t running in the Sept. 26 election. Main focus: Europe, Eurozone, Germany and ECB.