Close: London Session | Forex, Metals, Oil, Agriculture September 04, 2020

The industry encompasses production activities related to traditional farming of crops (such as corn, soybeans, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The improved view is mainly backed by the increase in export forecasts for soybeans, corn, horticultural products, and livestock, poultry and dairy. They were up 2.6% for the week, posting a fourth straight week of gains just like soybeans. Yet, grains such as soy and wheat took little hit in that crossfire, shielded by strong sales to China, among others.
For example, cotton is used in the clothing industry and corn is used in the ethanol industry. The key factors impacting exports this fiscal year are anticipated reductions in horticultural, beef and veal, and soybean exports. At the Vashi wholesale market, sugar was sold at ₹5-8 a quintal higher/lower as per quality. Sugar prices ruled flat on Friday. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,306-3,362 and M-grade 3,400-3,502.

The stumble and the rebound in the dollar helped break the oil price oil, but the dollar recovery may be short-lived. Further, continued Fed stimulus and partial shutdowns are likely to weigh on the dollar, in turn providing upward pressure for gold prices (which will further bolster gold stock prices). Elsewhere, spot gold and silver remain contained within tight ranges around 1935/oz and 28.80/oz respectively as the precious metals mirror Dollar action.
Gold closed 0.60% lower yesterday as momentum in the US dollar saw sentiment shift against the commodity. The dollar’s premium over the euro may well diminish regardless of whoever wins the U.S. election, Marcus Ashworth writes for Bloomberg Opinion. As we await the NFP figures, further strength in the US dollar could be significant for risk appetite. If the Fed follows through with Brainard’s suggestion and continues to stimulate the economy (as I feel certain it will), the dollar will likely remain under pressure.
less Technical indicators of the currency pair: The US dollar has become stable against a basket of world currencies. As the following graph illustrates, the U.S. dollar index (DXY) has been on a downward slide since March, when nationwide shutdowns first began. Should we see another strong number, the US dollar rally is likely to continue.

In closing, I continue to maintain caution for now where the gold miners are concerned since my leading indicator for the gold stocks is still in decline. The next confirmed “buy” signal for the gold stocks will occur when the internal momentum indicator turns up, and the XAU index closes decisively above the 155 level. All told, a bullish intermediate-term (3-6 month) bias toward the gold stocks is justified in my opinion. Source: NYSE That said, there’s a potentially positive aspect to the weak internal momentum within the gold stock group.
As I’ve suggested in previous reports, the metal’s currency component is the main driver for higher gold prices right now. Ahead of jobs data S&P 500 futures were pointing to a strong bounce at the open, the 10-year Treasury yield was at 0.651% and gold gained. Gold prices rose in early trade today, tracking the global trend in precious metals. This means the currency factor is likely to remain in the driver’s seat pushing gold higher in the foreseeable future.
The strong rally in equities this week has also been a headwind for gold. The indifference toward gold is likely to reverse in the coming weeks, however, as recent statements from the Federal Reserve suggest.

Oil went first, and stocks followed, then oil tried to rebound, and oil as a leading indicator would suggest that stocks should bounce back. BEFORE THE BELL Canada’s main stock index futures rose, supported by higher oil prices and as investors awaited the monthly domestic jobs data for signs of an economic recovery. The fire was still raging on the New Diamond tanker carrying about 2 million barrels of oil, said the spokesman, Captain Indika de Silva. My focus is in the financial markets, cyber-security, hacking, agriculture, natural gas, crude oil, geopolitics and alternative investments.
“The fire is still raging there,” Sri Lankan Navy spokesperson Indika Silva said Friday, adding the fire has yet to spread into the oil storage part of the ship.
**Whilst the oil and gas industry to which they service has high economic sensitivity, given the more stable nature of the midstream sub-industry, this was deemed to be average. While the new KWT doesn’t invest in oil directly—most of the country’s energy sector is state-owned—local business fortunes certainly hinge on the continued use of it.
Middle distillates inventories at Asia’s oil hub Singapore have soared above a nine-year high, official data showed. The breakdown in the broken-down oil market on Wednesday was a precursor to the breakdown in global stock markets. While a letter to the Japanese embassy doesn’t mention the oil spill directly, the Asian nation confirmed Tokyo is working on “several requests” from the Mauritian government.

The leading performances for the growth and momentum buckets in the US stock market continue to pull ahead, based on a set of exchange-traded funds. Today, market participants will shift their focus to the US nonfarm payrolls report. Economists project today s jobs report will show the unemployment rate dropped below 10% for the first time since March, a development Trump would be sure to trumpet. Thursday’s Key Earnings Broadcom (NASDAQ:AVGO) -2.6% AH despite infrastructure software strength.DocuSign (NASDAQ:DOCU) -9% AH on broad tech market weakness.
We expect a report on the US labor market. The Bloomberg Barclays US Aggregate Corporate Bond Index is a broad-based benchmark that measures the US investment grade, fixed-rate corporate bond market. It should also be noted that the labor market is currently a key gauge for the US Federal Reserve. The Fed’s new policy under which it buys corporate bonds – both investment-grade and high-yield – has lit a fire under this market.
Bill.com Q4 resultsSource: Bill.com Q4 earnings release Bill.com‘s revenue grew 33% y/y to $42.1 million, dramatically beating Wall Street’s expectations of $38.0 million (+20% y/y) in the quarter. BEFORE THE BELL Futures for the S&P 500 and the Dow rose after Wall Street’s worst session since June, with attention turning to the crucial jobs report.

In a bid to counter the U.S. restrictions, Beijing is also planning to develop a set of sweeping government policies to develop its domestic semiconductor industry. Terms | Privacy Beijing has revised export controls to require approval for technologies ByteDance s video app might need to run, complicating a forced sale underway.

At this point, it looks like the ECB failed to spur inflation with money printing, despite the fact that its balance sheet more than doubled since 2016. One staunch opponent to changing the status quo is Bundesbank President Jens Weidmann, who s also a member of the ECB s governing council. less Next week on Thursday the ECB is supposed to deliver its regular monetary policy assessment. Market jitters may persist as the ECB is scheduled to meet next week.
EU Negotiator Michel Barnier stated that there has been no progress as we await the next round of Brexit talks. Senior Downing Street figures are putting the chances of a Brexit trade agreement with the European Union deal at 30-40%, according to The Times. Fears of potential tax rises and the ongoing deadlocked Brexit talks weigh in on the pound. In other words, generalized EUR strength is not something the ECB needs in a crisis. The ECB had some success with that in the aftermath of the 2008-2009 Great Financial Crisis, but plenty of work remained.
To remind, the depreciation of the single currency was attributable to earlier remarks by ECB’s Chief Economist Lane.