Agriculture
In its monthly supply and demand report, the USDA revised up its view for U.S. sugar production to 9.15 million short tonnes, versus 8.96 million short tonnes in December. According to the company’s estimates, Brazilian production of arabica coffee will fall 37% to 31.23 million bags, while robusta coffee output is seen rising 17% to 21.67 million bags. The U.S. corn figures were the most surprising in the data landslide published by USDA on Tuesday, particularly for quarterly stocks and 2020 crop yield.
Currencies
Note that after a strong 25% gain last year, gold prices have wavered this year amid a rise in US bond yields and rebound in US dollar. The recent rally in the US Treasury yields and dollar also paused, helping support gold at lower levels. less BL Research BureauThe rupee (INR) bounced off the support of 73.40 last session and settled 13 paise higher in previous session against the dollar (USD). Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
The US Dollar Index declined by 0.15% in the overnight session ahead of an important stimulus speech by Joe Biden and the rising US Treasury yields. The US dollar weakened due to lower bond yields and increased demand for risk assets. The gold market is highly sensitive to the US dollar, which has been sold off rather drastically in general. Another significant driver of gold (GLD) to go lower is the fact that the US dollar (UUP) has gained right along with it.
The Chinese economy (in dollar terms) is now expected to overtake the US in 2028, five years earlier than estimated just a year ago. During the North American session, the euro strengthened while the dollar depreciated.
The US Dollar Index declined by 0.15% in the overnight session ahead of an important stimulus speech by Joe Biden and the rising US Treasury yields. The US dollar weakened due to lower bond yields and increased demand for risk assets. The gold market is highly sensitive to the US dollar, which has been sold off rather drastically in general. Another significant driver of gold (GLD) to go lower is the fact that the US dollar (UUP) has gained right along with it.
The Chinese economy (in dollar terms) is now expected to overtake the US in 2028, five years earlier than estimated just a year ago. During the North American session, the euro strengthened while the dollar depreciated.
Metals
On MCX, February gold futures were up 0.7% to Rs 49,410 per 10 gram while silver prices gained 0.6% to Rs 6,279 per kg. In global markets, gold rates edged higher today, boosted by rising coronavirus cases worldwide. Tracking positive global cues, gold prices moved higher in Indian markets. The Fed will take some significant actions over the course of this year, and that will drive gold and silver higher. 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.
Nonetheless, the writing is on the wall for the greenback, so it makes sense that gold would continue to be a bullish market. Gold prices are trading up 0.7% at Rs 49,389 per 10 grams. less Gold markets fluctuated during the trading session on Tuesday as we mimic what happened on Monday. However, the first half of the year is going to be all about commodities, gold included.
However, recently, we have seen the yields in the 10-year note spike, which tends to work against the value of gold in general.
Nonetheless, the writing is on the wall for the greenback, so it makes sense that gold would continue to be a bullish market. Gold prices are trading up 0.7% at Rs 49,389 per 10 grams. less Gold markets fluctuated during the trading session on Tuesday as we mimic what happened on Monday. However, the first half of the year is going to be all about commodities, gold included.
However, recently, we have seen the yields in the 10-year note spike, which tends to work against the value of gold in general.
Oil
Still, gasoline inventories rose by 1.88 million bbl, compared to expectations of a 2.7 million bbl build. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. I have over 20 years of international engineering experience in the chemicals, oil and gas, and renewable energy industries, and hold several patents related to my work. The XLE represents the stocks of large energy companies from different sub-sectors (e.g., integrated, oil production, equipment services).
U.S. crude inventories fell by 5.8 million barrels in the week to January 8 to about 484.5 million barrels, data from an industry body showed. The EIA updates U.S. oil inventories numbers at 10:30 a.m. and the December budget statement is at 2:00 p.m. CES continues and IHS Markit Ltd. report earnings. President Xi s statement was seen as bullish for the world economy and consequently oil demand.
EPA Readies Biofuel Waivers And Delays Trump administration considers exempting some oil refineries from 2019 mandates to use renewable fuel.
These are the companies that transport and store oil and gas. The front month Brent futures contract was seen at $56.87/bbl as of 0900 GMT, up by 0.51% compared to the previous day s settlement.
U.S. crude inventories fell by 5.8 million barrels in the week to January 8 to about 484.5 million barrels, data from an industry body showed. The EIA updates U.S. oil inventories numbers at 10:30 a.m. and the December budget statement is at 2:00 p.m. CES continues and IHS Markit Ltd. report earnings. President Xi s statement was seen as bullish for the world economy and consequently oil demand.
EPA Readies Biofuel Waivers And Delays Trump administration considers exempting some oil refineries from 2019 mandates to use renewable fuel.
These are the companies that transport and store oil and gas. The front month Brent futures contract was seen at $56.87/bbl as of 0900 GMT, up by 0.51% compared to the previous day s settlement.
United States
US stock futures are trading higher today, indicating a positive opening for Wall Street indices. Nasdaq Futures are trading up by 29 points (up 0.2%) while Dow Futures are trading up by 41 points (up 0.1%). Coming up…Investors looking for guidance on Fed policy have no fewer than five speakers today, and the publication of the Beige Book at 2:00 p.m. to look forward to. In fact if anything, maybe the market is overly skeptical of the Fed’s willingness to raise rates in the next few years.
less The FTSE futures are lacking direction ahead of the open taking cues from a range bound session on Wall Street. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening. The news that Lenovo would join the STAR Market, China’s answer to the Nasdaq, boosted its Hong Kong-traded shares, which on Wednesday hit their highest level since 2015. Prices shrugged off the latest developments in Europe and the US where death tolls and infections continued to rise amid patchy rollout of vaccines.
The stated goal of President Trump and his advisers was to reduce the US trade deficit with China. As inflation picks up from all this money printing, the Fed can’t allow the 10 Year Treasury to go to 3% .
less The FTSE futures are lacking direction ahead of the open taking cues from a range bound session on Wall Street. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening. The news that Lenovo would join the STAR Market, China’s answer to the Nasdaq, boosted its Hong Kong-traded shares, which on Wednesday hit their highest level since 2015. Prices shrugged off the latest developments in Europe and the US where death tolls and infections continued to rise amid patchy rollout of vaccines.
The stated goal of President Trump and his advisers was to reduce the US trade deficit with China. As inflation picks up from all this money printing, the Fed can’t allow the 10 Year Treasury to go to 3% .
China
In contrast, China’s President Xi Jinping was upbeat about the country s future when he asserted that he sees opportunities in general outweighing challenges . A third goal might have been to weaken the position of Xi Jinping, who has been moving China in a more repressive and nationalistic direction. For all the talk of his growing power, Chinese President Xi Jinping has not been having a good year.
Europe
Before the upturn, the price action dropped to 1.2137 amid a decline in the EURGBP cross pair, as well as statements from Angela Merkel. The House is demanding the 25th be invoked, governments continue to struggle to contain Covid-19 and post-Brexit talks are set to start. Green Daily In climate news today… EU watchdog approves bugs for human consumption.
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