The commodity rally, which some say is the beginning of a supercycle, continued Monday, boosting resource stocks.
Intermediate contract West Texas CL.1,
the most important benchmark for US oil, exceeded $ 60 a barrel for the first time since January 2020. Other commodities, including platinum PL00,
advanced as well.
“The robust recovery in oil and industrial metal prices over the past two months is leading to the idea of a new commodity supercycle, in which prices remain above trend in the coming years,” said Hussein Sayed, chief market strategist at FXTM.
Read also: The fifth commodity supercycle has begun, says chief analyst JPMorgan
Up to 12 of the last 15 weeks, Stoxx Europe 600 SXXP,
increased by 0.9% in the morning trade, with winners including Rio Tinto RIO miners,
and BHP Group, BHP,
and oil producer Total FP,
Nikkei 225 NIK,
increased by 1.9% in Tokyo to a new 30-year high, and Kospi Composite 180721,
increased by 1.5% in Seoul. The US market is closed for Presidents’ Day holidays, and the markets in Hong Kong and China are closed for the Lunar New Year. US ES00 futures,
YM00,
which is traded electronically, advanced.
The launch of vaccines and the progress made under the $ 1.9 trillion stimulus proposed by the Biden administration is helping to fuel movements in global asset markets this year, the so-called reflation trade. Last week, the return to the 10-year Treasury TMUBMUSD10Y,
exceeded 1.20% for the first time in a year.
Vivendi VIV,
the shares traded 18% more in Paris, after declaring that it will distribute 60% of the share capital of the Universal Music Group subsidiary to shareholders and will list the Amsterdam music label by the end of the year. Bollore BOL Investment Group,
which owns more than a quarter of Vivendi, earned 13%.
Lanxess LXS,
rose by up to 6% after agreeing to buy US specialty chemicals company Emerald Kalama Chemical for $ 1.04 billion from private equity firm American Securities.
Other notable movements on Monday included the US dollar falling below 7 Turkish pound USDTRY,
for the first time since August. Turkey’s central bank has doubled interest rates to 17% from 8.25% since September.