The recovery in commodities, which some say is the start of a super cycle, continued on Monday, boosting resource stocks.
The West Texas Intermediate CL.1 contract,
the main benchmark for oil in the United States, exceeded $ 60 a barrel for the first time since January 2020. Other commodities, including PL00 platinum,
also advanced.
“The robust recovery in oil and industrial metals prices in recent months is driving the idea of a new commodity super cycle in which prices remain above the trend for many years,” said Hussein Sayed, chief market strategist at FXTM.
Read too: The fifth commodity super cycle has started, says JPMorgan’s leading analyst
Up to 12 of the last 15 weeks, Stoxx Europe 600 SXXP,
rose 0.9% in morning trade, with winners including mining companies Rio Tinto RIO,
and BHP Group, BHP,
and Total FP oil producer,
The Nikkei 225 NIK,
rose 1.9% in Tokyo for a new 30-year record, and the Kospi Composite 180721,
rose 1.5% in Seoul. The US market is closed for the President’s Day holiday, and the Hong Kong and China markets are closed for the Lunar New Year. US stock futures ES00,
YM00,
who are trading electronically, advanced.
The launch of vaccines and progress on the $ 1.9 trillion stimulus proposed by the Biden government are helping to boost movements in the global asset markets this year, the so-called reflex trade. Last week, the 10-year Treasury yield TMUBMUSD10Y,
reached 1.20% for the first time in a year.
Vivendi VIV,
the shares were traded 18% higher in Paris after she said she would distribute 60% of the capital of the subsidiary Universal Music Group to shareholders and list the record company in Amsterdam by the end of the year. Bollore BOL investment group,
which owns more than a quarter of Vivendi, won 13%.
Lanxess LXS,
rose by 6% after agreeing to buy American 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, from 8.25% to 17%, since September.