Daily Close | Forex, Metals, Oil, Agriculture November 04, 2020



less General Comments: Winter Wheat markets were mostly a little higher on ideas that Russia did not get enough rain over the weekend, but Minneapolis closed a little lower. Traders in Europe, who were also up all night, were a bit more civilized chugging coffee instead of bourbon. The Sweet Hangover Helper You Need Right Now Piloncillo brings a thick, molasses-style kick to just about any liquid beverage especially this cinnamon-spiked coffee.


less US Dollar weakness was a glaring theme throughout Tuesday’s trading session as markets positioned for a blue-wave on election night. Great uncertainty regarding the final election outcome still remains, however, and is a theme likely to continue fueling US Dollar volatility. Betting odds for a Trump victory ping-ponged throughout election night and into Wednesday morning, which corresponded with aggressive repricing of US Dollar weakness. The same headwind has dragged down all major European tech companies, including and especially SAP (SAP) – with the fall of the dollar against the Euro hurting reported revenues.
If we do not get a quick outcome, or even a “mixed government”, then it is possible that the US dollar will strengthen, albeit perhaps in the short term. Typically currencies take their cue from Treasuries but the dollar failed to follow ten year Treasury yields, which are down more than -10% lower. Sentiment surrounding the US dollar helped lift the gloom hanging over the euro.
less The dollar index fell by 0.68% on Tuesday as the US went to the polls. The euro shot past the 1.17 handle yesterday as it closed the session 0.66% up.


This led to a fascination for monetary gold and for researching, analysing and writing about the gold market. US politics is just one of the myriad factors that influence the gold market and you never know how things will play out. The WGC report also points out that while the US is a large market, it is not the sole driver of gold demand. Gold is a global market. We discuss several different scenarios including the SP500 pennant pattern with a potential 34% rally and the relationship between gold miners and the broad markets.
The US accounts for only about 7% of physical gold demand. All they can do is borrow and spend money – which we’ve already shown is good for gold. Gold pushed over the psychological barrier yesterday as it closed 0.70% higher.


We also write daily and weekly reports, covering key variables in U.S. natural gas market (supply, demand, storage, prices and more). Source: Bluegold Research estimates and calculations This week, the U.S. Energy Information Administration should report a relatively smaller change in natural gas storage compared to the previous week. Total average daily consumption of natural gas (in the contiguous United States) should be somewhere between 76 bcf/d and 78 bcf/d.
Bearish factors this week include a ramp-up of oil production in Libya and additional lockdowns in Europe. Oil managed to close the session over $38 as it now looks to reclaim yearly highs above $40. WTI surged over 3% on Tuesday as API data revealed an 8-million-barrel decline from last week.

United States

“The major market averages moved sharply higher following Election Day, with the Nasdaq Composite gaining 4% as tech stocks climbed higher. The underpinning of markets, in particular the Fed’s buying of $3.5 trillion of bonds, including corporate bonds, had the effect of compressing credit spreads and suppressing volatility. With votes still being counted, former Vice President Joe Biden seemed as if he would eke out an electoral victory, but President Donald Trump wasn’t out of the race.
The biggest forbearance measure was a move by the Fed in May to exclude treasury bonds and central bank deposits from the leverage exposure measure. Biden said he was optimistic, while President Trump raised the possibility of election fraud without citing any evidence. A divided government appears likely, and partisan rancor shows no sign of dying down as President Trump is already threatening to contest the results. Also, understanding this industry is significantly more complicated than Wall Street tells investors, since these stocks move in tandem when in fact they are very different.
In the first presidential debate, Donald Trump called on his supporters to freelance as election observers.
We also know that, At the time of writing, just one major battleground states have been called, Florida for Trump. That followed the Fed’s move in March to allow US banks to delay the impact of IFRS 9 current expected credit loss estimates on their CET1 capital. The powers that be will Trump has already said he wants a stimulus package even bigger than Democrats were calling for.
Landmark Infrastructure Partners LP (NASDAQ:LMRK) focuses its business on developing and managing a portfolio of infrastructure assets and real property interests based in the United States. Trump nor Biden will wave a magic wand and fix the economic destruction inflicted by government actions in response to the COVID-19 pandemic. But this election has shown something profound: Support for Trump in 2016 wasn t a one-off. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.
a higher possibility of a Trump victory and a more fiscally conservative stance, he said. (NASDAQ:ISRG) is the pioneer of robotic surgery and maker of da Vinci surgical systems and related instruments and accessories for minimally invasive surgery. Trump’s campaign has already requested a re-count of ballots in Wisconsin and the same could be asked for other states. The county is heavily Cuban-American, and it would appear that Trump’s robustly anti-socialist line paid off.
One of the biggest narratives on Wall Street is that physical retail stores are dead.


Michael Barnier is set to report that the progression of Brexit talks have decelerated on key issues, as a lot of work still needs to be done.