Close: London Session | Forex, Metals, Oil, Agriculture September 07, 2020



Plant deliveries of soybean were also quoted higher at ₹3,900 a quintal, while soybean mandi rate was quoted at ₹3,850 a quintal. Sugar prices at the Vashi wholesale market ruled mixed and stayed unchanged at naka and mill level on Monday as demand eased. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,306-3,362 and M-grade 3,400-3,512 .


A strong euro reduces the level of imported inflation and seriously damages the ability of the central bank to reach its inflation target. Dollar Tree is projecting to open 325 Dollar Tree and 175 Family Dollar stores. Dollar Tree (DLTR) recently reported second quarter results that indicate that the problems at Family Dollar are in the rear-view mirror. The euro has climbed 5.6% against the dollar this year, its biggest advance since 2017. If it goes higher, it’s a big problem.” The gains in the euro mirror a weakening in the U.S. dollar.
Dollar General is over twice the size of Dollar Tree with a market cap of $50 Billion. Dollar General has over 16,000 stores and 75% of Americans live within seven miles of a Dollar General. In March, the ECB launched a new 750 billion euro ($853.6bn) pandemic emergency purchase program (PEPP) to support pandemic-hit countries and companies. With falling inflation, the ECB cannot afford the euro to surge further and cross the psychological threshold of 1.20 versus the US on a sustainable basis.
If that is the case, the upside could be earnings that compound 10-15% per year similar to the years before the Family Dollar acquisition.


This post focuses on the classical gold standard era, during which changes in a nation’s gold reserves were closely linked to changes in its trade balances. Well from a technical analysis standpoint, Chris Vermeulen of has stated that we could be looking at gold prices 250-350% higher than today’s prices, with silver gaining 550-750%. Even with the recent volatility in prices, gold and silver remain among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
Overall, the authors determined, the gold standard functioned well during this period, and the industrialized world experienced unprecedented peace, economic growth and stability, and trade openness. During this time a nation’s currency could be exchanged at any time for a fixed quantity of gold, the authors explained. This led to a system of fixed exchange rates, they added, and the balance of payments between nations were adjusted by gold flows to maintain the rates.
“Ultimately, adhering to the gold standard prevents large gyrations in a nation’s balance of payments,” Wen and Reinbold wrote. He is an analyst at which is a website aimed at offering quality analysis of gold prices. Gold prices were trading up by 0.3% at Rs 50,815 per 10 grams at the time of writing. The portfolio suits extremely well with my investment philosophy: simply buy-and-hold some gold forever and never exchange it for paper money.


Saudi seaborne crude exports for last week were seen at 45.5 million bbl (6.5 million bpd) compared to the revised 41.3 million bbl (5.9 million bpd) the week prior. Oil prices are also at their lowest levels since early July, weighed by demand uncertainties due to COVID-19 and ample inventories. The divergence continued this week, which seems likely to continue without another big move in oil prices to spark further interest in the more commodity sensitive MLP group.
We recently quoted, which highlighted three reasons (another supply glut, virus uncertainty, renewables boom) on why oil prices may remain depressed. Despite OPEC+’s initial supply cuts, which are now being augmented by cuts to prices as well, Saudi hasn’t seen an expected rebound in demand, suggesting that . Crude oil imports into the Mediterranean (MED) jumped to 44.91 mmbbl from around 30.49 mmbbl a week earlier. Typically, an oil refinery or chemical plant will have volumes of 100,000 bpd, or more, and run 24 hours a day, 7 days a week.
While the agency does not foresee any major slowdown due to Covid-19, the 2020 oil demand forecast in an earlier report was trimmed down considering reduced air travel.
As the recovery narrative is dealt with another blow, oil price volatility has climbed back to late-July levels. Even with the lowest Saudi crude prices in four months, it wasn’t enough to entice buyers into bolstering demand in the region.

United States

If the Fed can trigger a rebound even amid a global pandemic, what could possibly take the market down? Financial market participants assess the US labor market report for August, which turned out to be quite optimistic. That could mean reduced orders for semiconductor equipment makers: But an even bigger worry is that the Trump administration could target other Chinese chip makers too. The 2008 financial crisis left the US economy one notch weaker with insipid growth and continued delays to the rate hike cycle.
With this in mind, we believe the measure that captures to extent of the Nasdaq’s dismal returns prospects best may be market capitalization as a share of GDP. Subsidising production could fall foul of World Trading Organisation rules which could heighten tensions with the US. This means that sales and earnings would need to grow by 9% in order for the Nasdaq to return 10% per year. 4) CAN has no Wall Street sell-side coverage and is also weak in terms of IR communications with investors in the US, which could lead to continued undervaluation.
Last week, Trump s election opponent Joe Biden suggested its followers should receive mental health care. Enable Midstream (NYSE:ENBL), NGL and Alliance Resource (NASDAQ:ARLP) went from top 5 last week to bottom 5 this week.


Beijing launched a Mekong water cooperation initiative called Lancang-Mekong Cooperation Framework (LMC) in 2016, with five other countries Laos, Thailand, Myanmar, Cambodia and Vietnam. With tensions between Beijing and Ottawa running high, having a foot in both camps seems to have become a liability. Mr. Zhang, who is based in Beijing, is chairman of both CLSA and Citics.


Brexit talks are also set to resume this week in what is deemed a crucial round that will impact the potential of a deal in October. When it did pass the EU never thought that the UK would actually leave or if it did, then leaving would be EU terms. The terms of Brexit allowed for a temporary deal, a complete package with a framework, or a WTO fallback deal frequently described as “hard Brexit”. A big sticking point is repaying the debt issued to create this fund would place a heavy burden on the EU budget from 2028 onward.
Even after the landslide election, the EU was sure Johnson would not walk away, because it was 27 nations vs. 1 and supposedly 27 nations have the advantage. After meeting at the White House last week, Serbia and Kosovo leaders hold talks in Brussels today under EU auspices. The European Commission President spoke after the U.K. drew up new laws that affect the thorny issue of Northern Ireland and would weaken the EU withdrawal agreement.
Brexit s back | The U.K. issued a broadside against the European Union ahead of an eighth round of talks this week on their future relationship. It was even more generous, Financing the fund with joint EU bonds marks a big step towards mutualizing member states’ debt. With only around 54 billion euros in outstanding debt, the EU has yet to leap big time into the bond fray but that is about to change.