Close: London Session | Forex, Metals, Oil, Agriculture November 11, 2022

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Agriculture

Cocoa spat | The world s two biggest cocoa growers are escalating their fight to improve farmer pay, risking more tumult for global supplies. Soy tech | Soybean farmers in Uruguay are withstanding climate change through investments in technology to fight droughts. Indoor wheat | Vertical farmers have managed to cultivate wheat in a controlled environment.

Currencies

The euro zone faces a grim winter as a recession bites just as double-digit inflation grips the region and war rages nearby, according to the European Commission. The dollar weakened for another session, which also helped spur broad gains across assets. One dollar.

Metals

Commodities from oil to iron ore and copper also surged on China s pullback from its Covid Zero policy. Gold rose, while Bitcoin fell slightly, consolidating above $17,000.

United States

Stocks climb Markets were upbeat on Friday as Chinese authorities eased some Covid restrictions, adding to optimism about a potential slowing of Fed rate hikes. But the optimism might be tempered as Fed Chair Jerome Powell s favorite benchmark for recession risks inverted for the first time since the pandemic hit. Analysis of the US central bank s past reaction functions shows it tends to move quickly to ease once outright job losses are being recorded.
That brought enormous relief across assets, especially after Fed Bank of Philadelphia President Patrick Harker said he expects the pace of hikes to slow. Today s Must Reads Dry Mississippi | Record-low water levels are causing major shipping jams just as the US needs to export this year s harvest. That would be as soon as a February last hike, and July first cut, UBS economists wrote. Trump lashed out at Rupert Murdoch s News Corp. and DeSantis, claiming that the media mogul s news outlets are all in for his chief Republican rival.
In some instances, the Fed moved within several weeks of going from hiking rates to cutting them. S&P 500 futures rose 0.4% and Nasdaq 100 contracts climbed 0.6% as of 5:45 a.m. New York time.

China

Workers in protective gear at a neighborhood placed under lockdown due to Covid-19 in Beijing, China, on Thursday, Nov. 10, 2022. Daniel Ten Kate A public Covid-19 testing booth in Beijing on Wednesday.

Europe

Price caps | Hungary, which has seen the biggest increases in food costs in the European Union, is expanding price caps on staples to include eggs and potatoes. Maduro roamed the UN climate summit in Egypt this week, shaking hands with US envoy John Kerry and exchanging pleasantries with France s Emmanuel Macron. The European Union says recession is already here and the inflation shock will linger on.

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