Close: London Session | Forex, Metals, Oil, Agriculture November 24, 2020

Agriculture

Soy is also in strong demand, and the risk of that dry weather lowers the Brazilian crop and helps lift prices that reached six-year highs yesterday. Imports of wheat, barley, sugar, and pork are also running near twice the year-ago pace.

Currencies

Local currency sovereign bonds give investors an avenue to diversify their holdings away from the U.S. dollar and also to benefit from potentially stronger economic growth in emerging markets. The contrast between the eurozone and US preliminary PMI readings caught the short-term market leaning the wrong way, and the dollar snapped back after extending its recent losses. The dollar and gold prices were in the red as optimism over the development of coronavirus vaccines drove investors to riskier assets.
The U.S. dollar and gold prices dropped as optimism over the development of coronavirus vaccines drove investors to riskier assets. We look at the implications of Yellen as Treasury Secretary, talk emerging markets and the US dollar, why gold corrected so sharply yesterday and much more. The Hydrogen Council says the non-automotive market for fuel cells is multi-billion dollar market all by itself. Looking back, it makes sense that gold is the best performing asset class (+22.8%) due to concerns over the value of the dollar.
Another important indicator of the world sensing a major change is the Euro instead of the US dollar being the most used currency for global payments in October. However, today the US dollar is back on its heels and returning to yesterday’s lows against most major currencies. Once the ten stocks are determined, an investor invests an equal dollar amount in each of the ten stocks and holds them for the entire next year.

Metals

History would say that that when we see gold outperform by this amount, on average, gold continues to rally by 17% over the next year. All this said, GLD is an ETF which is ultimately tracking the price of gold, so the bulk of our analysis will be about the direction of gold prices. I’m still playing this with miners like Barrick (GOLD) and Kinross (KGC), which I believe are well-positioned to take advantage of the advance in the price of gold.” As it appears – for now – that digital gold is preferable to real gold… Is Benoit back?
Well, interest rates have really benefited from gold, lower real interest rates, and we focus on the real part. After hitting a record high of Rs 56,200 in August, gold prices have slumped amid vaccine progress and the recent outflow from gold-backed exchange-traded funds. In global markets, gold rates dropped to the lowest level in four months amid optimism over Covid-19 vaccine developments. The exact opposite is the case with gold – higher prices almost assuredly bring about higher supplies.
Nominal interest rates have come down, but because inflation is higher than that 0.9%, real rates are negative, and that’s a dream scenario for gold. Domestic gold and silver prices fell sharply today, continuing their weak trend of recent weeks.

Oil

However, the margin between crude oil and refined products prices normally increases whenever crude oil prices decline. On average, more than 80% of the company’s customers in its Natural Gas Liquids, Natural Gas Gathering & Processing, and Natural Gas Pipelines segments are investment-grade. The Canadian oil and gas producer said on Monday it would become the operator of its Syncrude oil sands joint venture by the end of 2021. “Lower wholesale gas prices in end-use markets, for instance, mean the economics of gas use are increasingly favorable when compared with alternatives such as oil.
Rosneft is going to sell a 10% stake in the Vostok oil project to Trafigura oil trader trading company. If the traditionally bullish oil cartel shows indecisiveness, then it’s a clear signal that it’s too early to turn bullish on oil. Please also see our Cross Commodity Report published yesterday, a joint publication by the power, carbon, coal, oil and gas analyst teams in Refinitiv Commodities Research.
Biden has said he supports a ban on new gas and oil permits including fracking on federal lands.
Source: ONEOK Investor Presentation (November 2020) With that said, I try to keep my oil and gas exposure rather limited because I want to have a well-diversified long-term portfolio. As we can see here, West Texas Intermediate crude oil was trading for $55.17 per barrel a year ago compared to $42.17 per barrel today.

United States

higher net interest income and a higher net interest margin), or even better, the Fed allowing banks to start repurchasing shares again. A smoother transition reduces the already low risk that Trump clings to power and also allows Biden and his team to have better chances of boosting the economy. US stock futures are trading higher today indicating a positive opening for Wall Street indices. In a year where the FAANG+Microsoft (NASDAQ:MSFT) basket of stocks are a big contributor to index returns, the Dow Dogs hold none of the FAANG+M companies.
Trump reportedly said he had recommended the General Services Administration, which helps transition to the new presidential regime, “do what needs to be done with regard to initial protocols”. Peter pointed out that the Fed will likely start focusing QE on the longer end of the yield curve and may well eventually own the entire long end. — for November is due at 10 a.m. American depositary shares in Russian online retailer Ozon Holdings are set to begin trading on the Nasdaq Global Select Market.
The TBT bottomed in late 2008, well ahead of the final bottom in the US stock market in March of 2009. The pick will also put an end to Wall Street’s fretting over Senator Elizabeth Warren, who had pledged to clip big banks with a tighter financial policy regime. In the US, the Russell 1000 Value Index traded at a 57% discount to its growth counterpart (Display, right) – also close to historical low levels.

China

WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient. Beijing, China-based 17 Education was founded to develop an innovative hybrid offline-online model for K-12 students in China.

Europe

The European Union has reached a deal with the U.S. biotech firm for the supply of its COVID-19 vaccine candidate, the head of the European Commission said. But now the EU wants to open up access.This week, the EU will propose new laws to help public and personal data move between businesses and research organizations. The European Union s flagship privacy law the General Data Protection Regulation, or GDPR has restricted what global companies can do with Europeans data.
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. As an EU/UK agreement edges closer, the main sticking points of fisheries, state aid, and governance remain. French President Emmanuel Macron will address the nation tonight to set out his plans for a gradual easing of coronavirus restrictions. Vaccination headlines from the University of Oxford, as well as Brexit optimism, have led to the pound reacting positively.
Goldman Sachs to start Paris trading venue as Brexit approaches. Main focus: Europe, Eurozone, Germany and ECB.

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