Open: London Session | Forex, Metals, Oil, Agriculture June 16, 2021

investors

Agriculture

With this capacity expansion, Dalmia Bharat Sugar will divert around 1,50,000 tonne of sugar for ethanol production compared to 60,000 tonne now. Results calendarAsahi India Glass, CESC, Commercial Syn Bags, DIC India, Kakatiya Cement Sugar, Manaksia Steels, Nureca, Pritika Auto Industries, RITES, Somany Ceramics, and Welspun Enterprises.

Currencies

US crude was last up $1.41, or 1.99 per cent, at $72.29 per barrel.In currency markets, the dollar was muted against other currencies. The dollar index was last at90.519 and going nowhere for now.The dollar was a shade firmer on the yen at 110.09,but short of resistance around 110.33. “Some market players also noted the dollar could rise by default as other major currencies appear to be losing momentum. “Today’s currency market suggests there is strong potential pressure to lift the dollar, should there be some sort of surprises from the Fed.
US Treasuries held steady, as did the US dollar, with little activity ahead of the Fed policy statement. It s also intriguing that the ECB cares a lot about the euro while none of the other big central banks ever say much about their currencies.

Metals

More Gold to sparkle as investment demand returns Earlier, the norms had only allowed for gold jewellery to be sold in 14,18 and 22 carats. Indian shoppers will get the assurance of the marked purity and credibility of their gold jewellery purchases as these norms become mandatory. 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.
Overall in April: And finally, despite the 12mth net buying, the recent trend of rotation into Treasury reserves from gold may have just reverted… A look at the copper-gold ratio — a good gauge of sentiment on the global economy — shows it has moved lower in line with Treasury yields. Copper import premiums paid by Chinese buyers are tanking and inventories in LME warehouses in Asia reached the highest in almost a year.

Oil

Brent crude was up $1.30, or 1.78 per cent, at $74.16 a barrel. U.K. inflation is also among the day s announcements, as well as U.S. oil inventories and Chinese industrial production and retail sales figures. Buy less oil, say oil companies. Still, oil is keeping the commodity flag flying, rising to its highest since 2018. “Everyone is turning overly bullish with crude prices.

United States

It will be the first time Fed officials publish their projections for rates, employment and crucially inflation since March. In my view, the Fed’s recent decision to adopt “flexible average inflation targeting” is a tacit admission that NGDP is a better target. The US stocks closed in the red overnight.“Investors would track various macro data points domestically and globally along with US Fed decision tomorrow. All eyes on US Fed meet Indian markets are expected to open on a weak note on Wednesday, as major global markets are trading in negative territory.
Consistent muted inflation expectations have encouraged the Fed to keep interest rates low for the past decade-plus. At the time, The Wall Street Journal reported that the company sought to raise at least $1 billion at a valuation of between $20 billion and $30 billion. The Fed bought $320 billion over that period, which is a lot, but still left $1.4 trillion searching for other buyers.
Oxford Economics produced word clouds of those that recur most frequently in communications from the Fed, the European Central Bank, the Bank of England and the Bank of Japan. A big Fed decision, China in spotlight, Israel air strikes and Oracle weakness.

China

China lashed out at the U.S., calling the country very ill indeed, after President Joe Biden secured support from European allies to present a more united front against Beijing.

Europe

11 a.m. Eurostat to present excess mortality metrics for April 1:15 p.m. EU foreign policy chief Josep Borrell holds press conference on relations with Russia 3:45 p.m. U.S. Lagarde Tone | Christine Lagarde is getting tougher with the European Central Bank s unwieldy group of 25 policy makers over the agenda for monetary stimulus.

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