Close: London Session | Forex, Metals, Oil, Agriculture October 12, 2020



Short sellers have made killings on stocks such as Nikola Corp. and Luckin Coffee Inc. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,252-3,302 and M-grade 3,320-3,462.


The US dollar is firmer against most of the world’s currencies, with the yen, South Korean won, and Taiwanese dollar notable exceptions. PALL has rebounded strongly since late September, which has been part of a broad-based rebound in the precious metals after the rally in the dollar paused. The Chinese yuan against the Singapore dollar rate, with the higher volume of about , dropping since the market testing the EMA200 inside of the EMA area. Analysts said the rupee came under pressure in view of strengthening US dollar against Asian currencies, though easing crude oil prices lent some support to the Indian unit.
CDR shopping centers are frequently anchored by tenants that were labeled as “essential” and never shut down at all like grocery stores, home improvement stores and dollar stores. The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.11 per cent to 93.15. In line with our expectations, PALL has rebounded well of late after the rebound in the dollar proved transient.
The rupee snapped its three-session winning run on Monday, slipping 12 paise to close at 73.28 against the US dollar amid weakening Asian peers against the greenback. The downside of these ongoing “stimulus” efforts – which are occurring on an enormous scale – is the inevitable devaluation of the US dollar. This outcome is likely to be associated with a weaker dollar and better relative performance for equities outside the US.


Solar investment accounts for around 18% of silver industrial demand, or 10% of silver total demand.” This is the same valuation as its Newfoundland neighbor Marathon Gold (OTCQX:MGDPF), which is at the Feasibility stage and is sitting on 4 million ounces of gold resources. (Source: Company Presentation) For those unfamiliar, New Found Gold is a newer company in the exploration space that’s begun an aggressive 100,000-meter drill program in Newfoundland, Canada.
(Source: Author’s Notes) As we can see above, the price paid per ounce for Tier-1 jurisdiction gold explorers during acquisitions is $90.74. The company has amassed a significant 151,000 square-kilometer land position in the province, with infrastructure that would make most gold juniors salivate. Given that New Found Gold is a pre-resource company, the valuation is getting difficult to justify here. As Goldman’s Mikhail Sprogis explains, “with global infrastructure stimulus tilting towards renewables, and solar in particular, silver stands out in the metals space as the obvious beneficiary.
It’s also getting lots of comparisons to Kirkland Lake Gold’s (KL) Fosterville Mine, arguably one of the most impressive discoveries of the past decade. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. Meanwhile, the average enterprise value per once for revenue-generating gold producers when acquired is $199.55.


Still, Iraq’s Oil Minister Ihsan Abdul Jabbar is optimistic about oil prices, saying this week that he expects oil prices to be around $45 a barrel in early 2021. Reports that Libya’s largest oil field is restarting production means that they could be producing an extra 300.000 barrels of oil a day in just a matter of weeks. OPEC published the 2020 World Oil Outlook wherein the group has forecasted oil demand to grow consistently upto 2030s and see a plateauing of demand in the late 2030s.
Oil prices are on the decline as reports of more oil from Libya offset the market’s issues in the aftermath of Hurricane Delta. Oil prices dropped as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta. Oil also is getting pressure from the end of the Norway oil workers strike. During the week, US crude oil prices gained around 10%, although still haven’t broken free of the narrow price range they have been stuck in for months.
Goldman reiterated its bullish 2021 view for both natural gas and oil, saying drivers for higher prices supersede the potential outcomes of the U.S. election.
Oil demand is forecasted to go up to 107.2 million bpd in 2030 from 90.7 million bpd in 2020. It engages in the receiving, handling, storage, and transferring of crude oil, refined products, natural gas, and intermediates.

United States

Therefore, if the market maintains these levels or higher into the election, it is likely that Trump would win by a landslide, based upon Prechter’s historical analysis. Along with stimulus negotiations and election polls, investors will be watching third-quarter corporate earnings, which kick off in the US this week. Source: NASDAQ AMD short interest page) With revenues soaring in recent years, AMD has turned from large losses and cash burn to profits and positive free cash flow.
For now, markets are likely to continue to move based on the narrative from the US, especially so near to the presidential election. A continuation of the current trade policy framework is likely to be a headwind for emerging and developed market equities outside the US, on a relative basis. This scenario would likely deliver a negative impact on our model portfolio, given our overweight exposures to value, size, foreign exchange and equity markets outside the US.
The Nasdaq Composite led the three major US stock indices last week, but it was small-cap stocks that drove it overall. While the US stock market is open today, the US and Canadian bond markets are closed for national holidays. US futures, including for the S&P, Dow Jones and NASDAQ, as well as European stocks followed Asia higher on Monday as positive economic news out of China lifted sentiment. In the first half of the year, Nasdaq spent approximately $158M on dividend payments and the current quarterly dividend has been confirmed at 49 cents per share.


Beijing has been encouraging portfolio capital inflows, and foreign asset managers hedging their purchases would be the obvious sellers of yuan in the forward market. Today the rate changed about minus 0.3% lower after the PBOC said it will lower the reserve requirement ratio for financial institutions, according to Reuters. Beijing has also tried to connect its work on restoring ecosystems to the larger issue of climate change. Coal ban | China has suspended purchases of Australian coal as Beijing continues to tightly control imports of the fuel amid soured political relations with Canberra.
State media reports that Beijing plans to push forward cooperation between Shenzhen and Hong Kong just across the border to a higher level. The Chinese (CYB) currency returned about half of its pre-weekend gains following the PBOC’s move and removed the reserve requirement for forwards. Simply click on this link and like the tweet.Shenzhen spotlight | Xi Jinping is bolstering plans to make southern China a global hub.
Just 16 months ago, Beijing-based GSX was valued at $2.5 billion after completing a $216 million initial public offering on the New York Stock Exchange. Hong Kong leader Carrie Lam has postponed her annual policy address scheduled for Wednesday to factor in any measures from Beijing. Xu Weikang, a 28-year-old software engineer in Beijing, is in the same boat.


This week also sees the latest European Council meeting, starting on October 15, where post-Brexit trade talks will dominate the agenda. Talks between the U.K. and EU over their post-Brexit relations continue in Brussels today, targeting a deal ahead of Thursday’s leaders summit. EU/UK trade talks will intensify this week ahead of PM Boris Johnson’s October 15 deadline. Deal or no dealYou may have heard this one before, but this week is definitely a crunch one for Brexit negotiations.
Five Things Follow Us Get the newsletter Stimulus stalemate continues, another big week for Brexit, and more virus restrictions.
Mr Johnson held weekend talks with Macron and Merkel so the right people are talking. Brussels wants EU members to use a common criteria when deciding whether to open or close their borders. Prime Minister Boris Johnson held talks with both French President Emmanuel Macron and German Chancellor Angela Merkel over the weekend in an attempt to find a breakthrough. While relatively sanguine about the impact of Brexit on financial stability, the 13 council members were more concerned about the impact of COVID-19 and geopolitical tensions.
The EU has been working to make powerful tech companies less powerful, and the bloc is building a list of businesses that are in its crosshairs, FT reports.