The collection of commodities, which according to some is the beginning of a supercycle, continued on Monday and drove up resource stocks.
The West Texas Intermediate Contract CL.1,
the leading benchmark for oil in the US, reached $ 60 a barrel for the first time since January 2020. Other commodities, including platinum PL00,
also advanced.
“The strong recovery in oil prices and industrial metals over the past few months is driving the idea of a new commercial bicycle in which prices remain above trend for many years to come,” said Hussein Sayed, chief market strategist at FXTM.
Also read: The fifth commodity superbike has started, says the leading JPMorgan analyst
At 12 of the past 15 weeks, the Stoxx Europe 600 SXXP,
increased by 0.9% in morning trading, with profiteers including miners, Rio Tinto RIO
and BHP Group, BHP,
and oil producer Total FP,
The Nikkei 225 NIK,
rose by 1.9% in Tokyo to a fresh 30-year high, and the Kospi Composition 180721,
increased by 1.5% in Seoul. The US market is closed for the Presidential Day holiday, and the markets in Hong Kong and China are closed for the New Year. US futures contracts ES00,
YM00,
electronically traded, advanced.
The deployment of vaccines and the progress of the proposed $ 1.9 trillion stimulus from the Biden administration are helping to fuel the movements in global asset markets this year, the so-called reflection trade. Last week, the yield on the ten-year treasury TMUBMUSD10Y,
reached 1.20% for the first time in a year.
Vivendi VIV,
Shares traded 18% higher in Paris after saying they would distribute 60% of the subsidiary Universal Music Group’s share capital to shareholders and list the music label in Amsterdam by the end of the year. Investment Group Bollore BOL,
which owns more than a quarter of Vivendi, achieved 13%.
Lanxess LXS,
rose to 6% after agreeing to buy US specialty chemicals firm Emerald Kalama Chemical for $ 1.04 billion from private equity firm American Securities.
Other notable movements on Monday include 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 to 17% from 8.25%.