Open: New York Session | Forex, Metals, Oil, Agriculture October 26, 2020

Agriculture

Traders and the government have agreed that the volume of wheat available for export this July-June season must not exceed 17.5 million tonnes. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. In September 2019, the company announced it would build robotic coffee kiosks for Texas-based startup Briggo.

Currencies

Buoyed by a weak US Dollar Index, which is close to a 2-1/2 low, foreign markets generally led trading action for the week through Friday, Oct. 23. Adding to this, the markets must also navigate fading prospects for a pre-election stimulus deal, a stronger dollar and the renewed surge in coronavirus infections. Furthermore, the company benefits from very cheap borrowing costs and this deal will boost earnings by about a dollar per share. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.25 per cent to 93.00.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. less The rupee depreciated 23 paise and settled at 73.84 (provisional) against the US dollar on Monday as muted domestic equities and strong American currency weighed on investor sentiment. The dollar gained against a basket of currencies, while gold prices were little changed.
The U.S. dollar gained against a basket of currencies, while gold prices were little changed. During the session, the domestic unit witnessed an intra-day high of 73.69 and a low of 73.88 against the US dollar. Even if we factor in a 30% tax rate, accretion is seen at a dollar per share after-taxes.

Metals

“Wealth is mostly stored via gold bars and coins the stock of which excluding those held by central banks amounts to 42600 tonnes or $2.6tr including gold ETFs. Nickel won the LME Week beauty parade for the past two years as the market collectively reassessed the role of the stainless steel component in electric vehicle (EV) batteries. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
Mechanically, the market cap of bitcoin would have to rise 10 times from here to match the total private sector investment to gold via ETFs or bars and coins. The world’s top aluminium producing country imported 355,999 tonnes of unwrought aluminium and aluminium products last month, the General Administration of Customs said. Note that in recent weeks, gold prices have remained in a narrow range, after losing momentum since hitting a record high of Rs 56,200 per 10 grams in August.
On Monday, the prices of gold plunged to its lowest level since October 15 but the yellow metal managed to recover the losses in early European trading. Meanwhile, the nickel market has become oversupplied as growth in China, the big stainless steel market, has slowed. 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. The rebound in nickel prices this year, reflecting China’s faster-than-expected recovery from the pandemic, “defies fundamentals,” said Ms. Durrant.

Oil

The combined company will have about 750K boe/d production, making it the third-largest Canadian oil and natural gas producer. Crude oil throughput in September rose 13.4% from the previous month to 4.33 million barrels per day (17.71 million tonnes). Also, the dip in oil prices is likely to have affected the integrated energy major’s total production volumes. Crude Value Insights offers you an investing service and community focused on oil and natural gas. Notably, the consensus estimate for total hydrocarbon production is pinned at 2,436 thousand barrels of oil equivalent per day (MBoE/D), suggesting a drop from the year-ago quarter’s 2,568 MBoE/D.
Notice that while much of the industry is in the doghouse over low natural gas prices, the cash flow shown above has increased significantly from the previous year. Although the price of crude oil in the September quarter recovered sequentially, thanks to easing of social-distancing measures, the commodity’s price was below the year-ago quarter level.
3 oil and gas producer, as a pandemic-driven collapse in demand forces the industry to consolidate.
After all, oil prices have recovered in a big way and this has already showed up a great deal in the second-quarter results. Oil prices were in the negative territory, pressured by Libya’s increasing production.

United States

less U.S. equity benchmarks traded lower in the earlier session, as Wall Street is heading into the last full trading week before Election Day. Both funds track an index of the 100 biggest Nasdaq stocks, a corner of the stock market that has massively outperformed in recent years. The state last voted Democratic in 1976 and a Trump loss there would suggest that Biden will win the US election in a landslide. The US and France recorded a record number of coronavirus cases, Spain announced a national curfew and Italy a partial lockdown.
Nasdaq Futures are trading down by 56 points (down 0.5%), while Dow Futures are trading down 194 points (down 0.7%). On the other hand, bonds racked up the style points, too, in ways that Wall Street tends to read as signs of better economic growth to come. US stock futures are trading lower today, indicating a negative opening for Wall Street indices. Others on Wall Street also anticipated a wave of corporate defaults comparable with the one that occurred during the 2008-09 financial crisis, when the speculative-grade default rate touched 14.7%.
Wall Street futures fell, mirroring global equities, as a stalemate in Washington over the stimulus package hurt sentiment. The Justice Department’s attempt to punish Google for its competitive practices in internet search could end up taking a major toll on Apple, The Wall Street Journal reported.

China

Health authorities reported 137 new cases on Sunday, all of which were confirmed in Xinjiang Province, making this by far the largest new outbreak since the Spring. The guided revenue reacceleration to ~25% YoY in 2Q21 (from ~8% YoY in 1Q21) is particularly impressive given the shortened summer and delayed reopening of learning centers in Beijing. Chinese authorities are scrambling to suppress yet another outbreak in far-flung Xinjiang after a 17-year-old garment factory worker tested positive.
The Centrale China plan President Xi Jinping spoke at a meeting in Beijing devoted to mapping out the country’s 14th five-year plan. According to Reuters, Beijing has decided to impose sanctions on Boeing’s defense unit, Raytheon and (again) Lockheed. According to Reuters, Beijing has decided to impose sanctions on Boeing’s (BA) defense unit, Raytheon (RTX) and (again) Lockheed. Going forward, I feel comfortable underwriting further pick-up in enrollment growth in Beijing towards the 2021 winter holiday, which should entail continued YoY acceleration in 2H21.
U.S. shipments in September soared to 3.9 million tonnes, spurred by cheap prices and a trade deal between Beijing and Washington, data from China’s General Administration of Customs showed. Beijing considers Taiwan a wayward province it has vowed to bring under control, by force if necessary.

Europe

Turkish President Recep Tayyip Erdogan reiterated his criticism of France’s treatment of Muslims and repeated his call for French President Emmanuel Macron to get psychiatric help. Erdogan said Macron should seek psychiatric help and protested the treatment of Muslims across Europe. Hard to tell whether the ECB can really move the needle, as the policy ball is in the EU’s court, as fiscal stimulus is far more powerful. EU lawmakers voted to reject proposals, backed by farmers, to ban plant-based products from using terms such as steak, sausage or burger.
It’s my feeling that even though Johnson may have given the EU ‘two fingers up’ the EU and those behind it aren’t done with the Brits yet.
A wider spread of BTP over Bund might represent a buy opportunity as in the long term the ECB will need to print more money to keep Europe afloat. All eyes will be on the economic data and monetary policy outlook coming from the European Central Bank (ECB) on Thursday, 29 October. The EU played hardball giving zero ground for four years while undermining the UK from within its own political and bureaucratic structures.
One need look no further than the insipid way Merkel has handled the obvious intelligence job surrounding Russian opposition figure Alexei Navalny. Brexit has exposed a myriad of fault lines within the EU, most notably between the two heavyweights, Germany and France.

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