NEW YORK (Reuters) – Last week’s sharp sell-off in global stocks and silver prices rebounded on Monday as retail investors expanded their social media-fueled battle with Wall Street for eight years to hold the precious metal to high.
A change in the retail trading frenzy pushed mining stocks up both sides of the Atlantic, with a 7.2% jump in the Eicher Silver Trust ETF – the largest silver-backed ETR – to make it its best day since 2008 Put it on track
ETF data shows that a record 37 million shares have jumped silver from Thursday to Friday, each with silver upside.
BHP Group, Glencore plc and Anglo American plc were among the top six gainers in mining at the FTSE 100 in London, with blue-chip 0.92%.
Minor Fresnillo rose 8.95% to 1,076 to help the Pan-European STOXX 600 index lead by 1.24%.
On Wall Street, nine of the 11 major S&P sectors have advanced, with technology being the dominant one.
Silver rose to an eight-year high of $ 30 an ounce, rising 6.3% to trade at $ 28.70, an increase from earlier.
The social media trading frenzy made huge gains last week at companies like GameStop Corp, forcing hedge funds to cover their smaller positions and spread volatility on Wall Street. The three main stock indexes posted their biggest weekly declines since October.
Gametop fell 27.31% to $ 236.23.
“Silver has a knock-on effect compared to Gamestop because it has links to miners,” said Connor Campbell, a financial analyst at SpreadX. “” If you start pushing silver more, it’s going to have an impact on other industries and other markets, and that’s clearly what happened. “
Silver prices rose 19% on Thursday after posting on Reddit, with small investors buying silver mining stocks and exchange-traded funds (ETFs) backed by physical silver bars in a GameStop-style squeeze.
Spot silver rose 6.33% to $ 28.71.
MSCI’s benchmark for global equity markets rose 1.6% to 653.19.
On Wall Street, the Dow Jones Industrial Average gained 1.06%, the S&P 500 gained 1.82% and the Nasdaq Composite gained 2.67%.
The US dollar hit a 2-week high due to weakness in the euro, Swiss franc and Japanese yen, with the view that the United States has an advantage in boosting its economy and vaccinating its population against COVID-19.
COVID-19 choke in Europe’s largest economy to curb proliferation of consumer spending, followed by a tight lockdown last year, following an unexpected 9.6% drop in Germany’s retail sales in December as euro’s sales plummeted. I.
The dollar index climbed 0.393% to 0.59%, reaching $ 1.2064.
The Japanese yen weakened 0.25% vs. the greenback at 104.92 per dollar.
Oil prices rose, weighed down by expectations of dwindling inventories and global economic recovery, however halting the vaccine rollout and reaping the benefits of travel restrictions.
Brent crude futures gained $ 1.31 to close at $ 56.35 a barrel. US crude futures rose $ 1.35 to close at $ 53.55 a barrel.
Gold and silver rose 0.70% to $ 1,859.05 an ounce. US gold futures closed up 0.7% at $ 1,863.90.
(Graphic: Silver has outperformed in terms of gold price and ETF holdings in recent months 🙂
Data showed overnight that sugar factory activity slowed in January as restrictions in some areas took a toll. In the euro area, manufacturing growth remained resilient at the beginning of the year but lost momentum from December.
British data showed an even greater conflict, with manufacturers facing twin headwanders of COVID-19 and Britain’s exit from the European Union.
While the coronovirus vaccine rollout is slow globally, with concerns about whether they will work on new COVID strains, Europe was also stunned by the news that it would receive more than 9 million doses from AstraZeneca in the first quarter.
With the boom in risky markets, Italian government bond yields fell 2-3 basis points of the curve.
German bund yields, meanwhile, are the benchmark for the euro area, anchored around -0.51% on Monday, which monitors US Treasury yields. The 10-year US Treasury note produced 1.0723%.
Reporting by Herbert Lash; Editing by Richard Chang