The concentration of commodities that some say is the start of a supercycle continued Monday and bolstered resource stocks.
The West Texas CL.1 Intermediate Contract,
the first oil benchmark in the United States, topped $ 60 a barrel for the first time since January 2020. Other commodities, including PL00 platinum,
also advanced.
“The strong recovery in oil and industrial metals prices over the past two months is driving the idea of a new commodity supercycle in which prices remain above trend for many years,” said Hussein Sayed, strategist FXTM main market.
Also read: The fifth commodity supercycle has begun, says JPMorgan’s leading analyst
Up to 12 of the last 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,
El Nikkei 225 NIK,
increased 1.9% in Tokyo to a 30-year high, and Kospi Composite 180721,
increased 1.5% in Seoul. The U.S. market is closed for Presidents ’Day holidays and the markets in Hong Kong and China are closed for Lunar New Year. US ES00 stock futures,
YM00,
electronically listed, advanced.
The deployment of vaccines and the progress of the $ 1.9 trillion stimulus proposed by the Biden administration are helping to fuel movements in global asset markets this year, the so-called reflation trade. Last week, the performance of the 10-year Treasury TMUBMUSD10Y,
exceeded 1.20% for the first time in a year.
Vivendi VIV,
the shares were traded 18% more in Paris after he said he would distribute 60% of the share capital of Universal Music Group to shareholders and list the music label in Amsterdam by the end of the year. Bollore BOL Investment Group,
which owns more than a quarter of Vivendi, gained 13%.
Lanxess LXS,
rose to 6% after agreeing to buy U.S.-based specialty chemicals company Emerald Kalama Chemical for $ 1.04 million from private equity firm American Securities.
Other notable movements on Monday included the US dollar which fell below the 7 Turkish lira USDTRY,
for the first time since August. Turkey’s central bank doubled interest rates to 17% from 8.25% in September.