The rally in commodities that some say marks the beginning of a super cycle continued on Monday, boosting commodity supplies.
The West Texas Intermediate Contract CL.1,
the leading US oil benchmark, hit $ 60 a barrel for the first time since January 2020. Other raw materials, including platinum PL00,
also advanced.
“The robust recovery in oil prices and industrial metals in recent months is driving the idea of a new commodities super cycle where prices will remain above trend for many years to come,” said Hussein Sayed, FXTM lead market strategist.
Also read: The fifth super cycle of commodities has begun, says the lead JPMorgan analyst
12 of the past 15 weeks, the Stoxx Europe 600 SXXP,
increased 0.9% in morning trading, with winners including Rio Tinto RIO miners,
and BHP Group, BHP,
and oil producer Total FP,
The Nikkei 225 NIK,
rose 1.9% in Tokyo to a new high in 30 years, and the Kospi Composite 180721,
rose 1.5% in Seoul. The US market is closed for Presidents’ Day, and the markets in Hong Kong and China are closed for Chinese New Year. US Equity Futures ES00,
YM00,
that are traded electronically, advanced.
The roll-out of vaccines and the progress of the $ 1.9 trillion stimulus measures proposed by the Biden administration will help fuel movements in global asset markets this year, the so-called reflation trade. Last week, the return on the 10-year Treasury was TMUBMUSD10Y,
exceeded 1.20% for the first time in a year.
Vivendi VIV,
shares were up 18% in Paris after it said it would distribute 60% of the share capital of its subsidiary Universal Music Group to shareholders by the end of the year and list the Amsterdam music label. Investment group Bollore BOL,
which owns more than a quarter of Vivendi, won 13%.
Lanxess LXS,
rose a whopping 6% after agreeing to buy US-based specialty chemicals company Emerald Kalama Chemical for $ 1.04 billion from private equity firm American Securities.
Other notable moves on Monday included the US dollar falling below 7 Turkish lira USDTRY,
for the first time since August. Turkey’s central bank has more than doubled interest rates since September, from 8.25% to 17%.