The rally in commodities, which some say is the start of a supercycle, continued on Monday, boosting resource stocks.
The West Texas CL.1 intermediate contract,
the leading benchmark for oil in the US, exceeded $ 60 per barrel for the first time since January 2020. Other commodities, including platinum PL00,
“The robust recovery in oil and industrial metals prices over the past few months is driving the idea of a new commodity supercycle in which prices remain above trend for many years,” said Hussein Sayed, strategist Head of Market at FXTM.
Read also: The fifth commodity supercycle has begun, says lead analyst at JPMorgan
Up to 12 of the last 15 weeks, the Stoxx Europe 600 SXXP,
increased 0.9% in morning trade, with winners including miners Rio Tinto RIO,
and BHP Group, BHP,
and the oil producer Total FP,
The Nikkei 225 NIK,
rose 1.9% in Tokyo to a new 30-year high, and the Kospi Composite 180721,
it was up 1.5% in Seoul. The US market is closed for the Presidents’ Day holiday, and the Hong Kong and Chinese markets are closed for the Lunar New Year. US stock futures ES00,
electronically traded, advanced.
The launch of vaccines and progress on the $ 1.9 trillion stimulus proposed by the Biden administration is helping fuel movements in global asset markets this year, the so-called reflation trade. Last week, the 10-year Treasury yield TMUBMUSD10Y,
exceeded 1.20% for the first time in a year.
The stock traded 18% higher in Paris after it said it would distribute 60% of the share capital of subsidiary Universal Music Group to shareholders and list the record label in Amsterdam by the end of the year. Bollore BOL investment group,
who owns more than a quarter of Vivendi, gained 13%.
It rose as much as 6% after agreeing to purchase US 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 retreating below the 7 Turkish lira USDTRY,
for the first time since August. Turkey’s central bank more than doubled interest rates, to 17% from 8.25%, since September.