Oil futures hit a 13-month high as global stocks rally with US markets closed

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,
+ 2.05%,
the leading benchmark for oil in the US, exceeded $ 60 per barrel for the first time since January 2020. Other commodities, including platinum PL00,
+ 4.11%
also advanced.

“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,
+ 1.00%
increased 0.9% in morning trade, with winners including miners Rio Tinto RIO,
+ 3.22%
and BHP Group, BHP,
+ 3.19%
and the oil producer Total FP,
+ 3.63%.

The Nikkei 225 NIK,
+ 1.91%
rose 1.9% in Tokyo to a new 30-year high, and the Kospi Composite 180721,
+ 1.50%
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,
+ 0.40%

+ 0.48%,
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.

Vivendi VIV,
+ 17.09%
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,
+ 13.13%,
who owns more than a quarter of Vivendi, gained 13%.

Lanxess LXS,
+ 4.54%
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.


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