Agriculture
Arabica coffee futures rose sharply on Friday, boosted by concerns about dry weather in top producer Brazil, while sugar prices also advanced. Nigerian cocoa export delays to likely worsen FX scarcity Around 100,000 tonnes of cocoa have been caught up by the new system, Mufutau Abolarinwa said. This year, Brazil sold huge soybean volumes to top importer China, leaving little for domestic consumption.
Currencies
Smaller increases were recorded by the Australian dollar (+1.02%), the euro (+0.90%), the Canadian dollar (+0.78%), the Swiss franc (+0.73%), and the pound sterling (+0.17%). FOREX: The dollar hit its lowest in two and a half years in early London trading while riskier currencies dipped slightly as the global equities rally paused for breath. The New Zealand dollar notched up the steepest gain against the US dollar (+1.30%). Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
The delay to shipments of Nigeria’s second biggest export could worsen dollar scarcity in Africa’s biggest economy. That’s because this metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. Instead, we recommend investing in the company’s debt, which at the time was trading at 20 cents on the dollar. Dollar’s slump thrusts currency peers to brink of new highs.
Citi cited the low-interest environment and the bearish outlook of the U.S. dollar as the basis of its prediction. Even small institutions that don’t have large U.S. dollar exposures can find themselves at risk.
The delay to shipments of Nigeria’s second biggest export could worsen dollar scarcity in Africa’s biggest economy. That’s because this metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. Instead, we recommend investing in the company’s debt, which at the time was trading at 20 cents on the dollar. Dollar’s slump thrusts currency peers to brink of new highs.
Citi cited the low-interest environment and the bearish outlook of the U.S. dollar as the basis of its prediction. Even small institutions that don’t have large U.S. dollar exposures can find themselves at risk.
Metals
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Steel Dynamics has seen earnings decline by an average of 2% per year over the last three years, while revenue has grown by 1% per year. Rising inflation expectations eventually could transform into a collapse in monetary/economic confidence, at which point gold would exhibit extreme relative strength. According to CMC Markets’ chief strategist Michael McCarthy, the optimism about economic recovery inspired by the vaccine optimism has dampened the demand for safe-haven investments, including gold.
One that I have addressed many times in the past (most recently here) is the belief that gold tends to be relatively strong when inflation expectations are rising. less Image Source: Pixabay The prices of gold fell on Monday and are on track for its worst monthly decline since November 2016. The same can be said for the We expect the Materials SPDR to be highly correlated with copper prices, but not necessarily with a steel company.
The rally in steel stocks has been more orderly and not quite as extreme as what we have seen from copper stocks. As with most industries, the steel industry has been hurt by the global health crisis, and Steel Dynamics has seen its earnings and revenue drop as a result. The last time we saw such a big bullish position on copper was in June ’18 when the price of copper was hovering right at $3.30.
One that I have addressed many times in the past (most recently here) is the belief that gold tends to be relatively strong when inflation expectations are rising. less Image Source: Pixabay The prices of gold fell on Monday and are on track for its worst monthly decline since November 2016. The same can be said for the We expect the Materials SPDR to be highly correlated with copper prices, but not necessarily with a steel company.
The rally in steel stocks has been more orderly and not quite as extreme as what we have seen from copper stocks. As with most industries, the steel industry has been hurt by the global health crisis, and Steel Dynamics has seen its earnings and revenue drop as a result. The last time we saw such a big bullish position on copper was in June ’18 when the price of copper was hovering right at $3.30.
Oil
Saudi seaborne crude exports for last week were seen at 30.8 million bbl (4.4 million bpd) compared to the revised 41.9 million bbl (6.0 million bpd) the week prior. WTI crude oil prices fell on Monday after signs showing that OPEC+ members may not be able to reach an agreement to rein in production in a Monday meeting. The weak earnings were due to a significant decline in oil and gas prices, despite some UK production increase. The company has 60 billion cubic feet of natural gas storage and 140 million barrels / day of liquid storage capacity.
Those are all below current prices, however, the company’s oil has a $2.9 differential versus WTI, and 1H 2020 volumes of roughly 67.1 thousand barrels/day. Its dividend is strong, and its natural gas focus isolates it from many oil transportation concerns related to COVID-19. However, the company is now much better positioned to handle a downturn in oil prices. Oil prices could improve with recovering demand, which will greatly help Equinor’s upstream operations.
The detail per segment is shown below: Source: From the company presentation (extract) Equinor’s realized price for liquids was $38.3 per barrel during the third quarter of 2020.
A deviation of oil prices from weekly inventory changes may reflect an early pricing-in of vaccine optimism.
Those are all below current prices, however, the company’s oil has a $2.9 differential versus WTI, and 1H 2020 volumes of roughly 67.1 thousand barrels/day. Its dividend is strong, and its natural gas focus isolates it from many oil transportation concerns related to COVID-19. However, the company is now much better positioned to handle a downturn in oil prices. Oil prices could improve with recovering demand, which will greatly help Equinor’s upstream operations.
The detail per segment is shown below: Source: From the company presentation (extract) Equinor’s realized price for liquids was $38.3 per barrel during the third quarter of 2020.
A deviation of oil prices from weekly inventory changes may reflect an early pricing-in of vaccine optimism.
United States
While these stocks represent less than 5% of available stocks, their market cap exceeds $19 trillion out of the approximately $33 trillion (57.6%) of the US stock exchanges. In addition, UHS could also see a boost in revenue next year stemming from the postponement of elective procedures this year. A recent executive order issued by President Donald Trump would prevent U.S. investors from buying securities of the listed firms starting late next year.
Markets started to worry about a potential re-escalation of US-China friction during the last two months of Trump’s presidency, which could dent risk sentiment. The company is now trading on the NASDAQ, with 20 million shares outstanding, at just under $35/share, so a market capitalization less than $700 million. The population of this unique mega cap segment is approximately 330 stocks out of over 7,800 stocks across the US stock exchanges. Trump has also threatened to veto the annual defense authorization bill over language that would force the military to rename bases currently named after Confederate leaders.
The potential market opportunity is very large as Parkinson’s is affecting about a million people in the US alone, of which 40% has related disease psychosis. If that price stands, the deal would be the largest in the US this year. I see UHS benefiting from this secular growth in healthcare spend, given its strong presence and geographic reach.
Markets started to worry about a potential re-escalation of US-China friction during the last two months of Trump’s presidency, which could dent risk sentiment. The company is now trading on the NASDAQ, with 20 million shares outstanding, at just under $35/share, so a market capitalization less than $700 million. The population of this unique mega cap segment is approximately 330 stocks out of over 7,800 stocks across the US stock exchanges. Trump has also threatened to veto the annual defense authorization bill over language that would force the military to rename bases currently named after Confederate leaders.
The potential market opportunity is very large as Parkinson’s is affecting about a million people in the US alone, of which 40% has related disease psychosis. If that price stands, the deal would be the largest in the US this year. I see UHS benefiting from this secular growth in healthcare spend, given its strong presence and geographic reach.
China
China imposed anti-dumping tariffs on Australian wines last week after an investigation by Beijing, whose findings were rejected by the Australian government.
Europe
Christine Lagarde, President of the European Central Bank, is set to speak later and repeat her message of adding stimulus in the upcoming meeting. Since negative yields are now the standard in the European Union, Switzerland, and Japan, et al the question arises, “When will the United States join the pack?” EU plans to impose tougher environmental standards on batteries. London ” thrown to the lions” as Brexit finance deal unlikely. As BioNTech is a German firm, approval in the EU will likely follow shortly.
Michel Barnier, the EU’s Chief Negotiator remains in London for ongoing in-person talks that resumed on Friday. Commenting on Sunday, Raab insisted that and that the EU needs to understand that.
0 Michel Barnier, the EU’s Chief Negotiator remains in London for ongoing in-person talks that resumed on Friday. Commenting on Sunday, Raab insisted that and that the EU needs to understand that.
