Open: London Session | Forex, Metals, Oil, Agriculture October 05, 2020



The weather event, which is set to run until February, will bring more humidity, less sunshine, a fall in average temperatures and cause a drop in coffee producers’ productivity. MARKET NEWS Chicago corn futures slid for a second session with prices coming under pressure on expectations of a weekly U.S. report showing rapid harvest progress. The firm estimated U.S. corn production at 14.812 billion bushels, compared with its Sept. 4 figure of 14.961 billion.
Russia, one of the world’s top wheat exporters, applied a grain export quota mechanism in April-June to ensure domestic supplies during the COVID-19 pandemic.


Euro-area finance ministers plan to say today who will fill the only vacancy on the European Central Bank s top team for the next five years. Coming Up Euro Stoxx futures are pointing to a positive open, following Asian stocks’ moves higher.


However, it is important to point out that this sector included physical holdings, as well as stocks that specialize in other minerals, not just gold and silver. The only notable underperformed was First Majestic Silver (AG), which lost slightly over 20% in Q3.


Brent closed 6.3% down on Friday, while WTI closed 8.0% lower. Monday morning trade saw both Brent & WTI recover with Brent going up by 2.2% to $40.15/bbl, while WTI was up by 2.6% to $38.02/bbl as of 05:40 GMT.

United States

Following a nearly two-year review, the Fed announced we will no longer head off higher inflation by preemptively raising interest rates. Both the core (in blue) and overall rate (in red) are rising from their respective pandemic lows but are still below the Fed’s 2% average inflation target. New York Fed President Williams also gave a speech in which he talked about the Fed’s market intervention to calm credit markets (emphasis added). The recovery in prices are more on the back of positive comments of recovery from the doctors of the US president who is expected to be discharged today.
In the past, the Fed raised rates to prevent runaway inflation. However, it contained a very good and brief explanation of why the ECB (and probably the Fed) chose a 2% inflation target. Second, the ECB (and the Fed) determines policy for a very large economic region; each has to allow growth imbalances within that region. Donald Trump may be able to leave hospital as soon as today, Boris Johnson warns of a tough winter, and it’s crunch time for Brexit.
He then describes two recent events where the Fed intervened to calm the markets. If Joe Biden maintains his lead in the polls through Donald Trump’s coronavirus battle, the curve could steepen further as election day approaches.


The European Union and Britain have seen production of rapeseed, their most common oilseed crop, wane in the past two years due to adverse weather and insect problems. ECB Indicators | The global economy is entering the final quarter of its worst year in living memory in a precarious state. The bloc’s finance ministers are due to nominate a new ECB executive board member. The EU s second-highest court rules on a challenge by HeidelbergCement and Schwenk Zement against a veto of their joint plans to buy assets in Croatia 11 a.m.
Court Rulings | The EU’s lower court will today decide on a couple of competition cases. Merkel said she wants to avoid a full national lockdown as infection numbers are rising again in Europe’s largest economy. German cement-makers HeidelbergCement and Schwenk Zement will also find out whether they ve won an appeal against an EU veto of their plans to buy assets in Croatia. First up, a challenge by French supermarket chains Casino and Intermarche against the decision by EU antitrust regulators to raid some of their premises.
We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU. Showdown The stage is set for a showdown on Brexit at a European Union summit this week.