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Shares on major European stock exchanges were slightly higher during premarket trading on Wednesday as investors continued to assess the economic recovery from the coronavirus pandemic.
Traders were awaiting industrial production figures for Germany as well as the United Kingdom's monthly Halifax House Price Index, while in the United States the Federal Reserve's minutes from last month's policy meeting were in focus.
The DAX was up 0.15% at 8:00 am CET, while the CAC 40 rose just 0.05%. The FTSE 100 was 0.14% higher at the same time in London.
Breaking the News / JC
*again no currency data
Gold above $1800.00
Happy hump y’al
Businesses around the world are beginning to spend the vast sums of money borrowed through the pandemic, triggering a surge in takeovers and capital spending that will push corporate indebtedness to record levels, according to fund manager Janus Henderson.
Companies rushed to the capital markets last year to fortify their balance sheets through the downturn, tapping rock-bottom interest rates in a burst of borrowing that pushed total corporate debt to a new peak of $US13.5 trillion ($18.01 trillion) in 2020.
Now, companies are turning from raising money to putting it to work as economies like the US and Australia rebound stronger than expected.
The global spending wave will push net debt – the total amount borrowed, less cash – from $US8.3 trillion last year up to a record $US8.9 trillion by the end of the year, according to the top end of forecasts from the asset manager released on Wednesday.
“Last year was very much about survival,” said Jay Sivapalan, the Melbourne-based head of Australian fixed interest for Janus Henderson. “The corporate bond market was used by companies to bring forward a lot of borrowing.”
Now, against the backdrop of robust global economic growth, companies are looking to spend their pandemic debt “war chest” on mergers and acquisitions, dividends, share repurchases and capital expenditure, known as capex, he said.
The race is on to acquire quality assets ... I expect the gold industry, which is notorious at this, to go for it...so watch out for bid for CEY. Premiums being paid in other industries are way above 30%...
good luck
the Gnome
5 Day 1784.30
20 Day 1808.20
50. Day. 1833.90
100 Day. 1791.90
200 Day. 1839.30
I revere your ancient footwear Mr Bond.
You appear to have played this game before.
The precise 100 day moving average is actually $1792.40 (that was yesterday) and the price is holding above that so far tonight.
I just hope it's just men in suits finding their rent money and $1800 is regained when the European markets open later today.
IE
ETF ,s
And now the game goes on.
Knock the price down dumping paper, the buying physical, in it's place.
But where and who takes the loss.
The mugs.
RUSSIA WEALTH FUND CUTS DOLLAR HOLDINGS TO ZERO
LOL
Break out the popcorn :)
Saudi Arabia and the United Arab Emirates headed into the boxing ring for another round on Monday, before OPEC+ called it quits on a production deal. The unresolved spat between the long-time allies saw WTI crude soar another 2% to near $77/bbl, further squeezing an already tight oil market and raising concerns over inflation. At issue is the current terms of "baselines," or the measure in which each country calculates its production cuts. The UAE feels its current level of 3.2M bpd from April 2020 is too low - and should be 3.8M bpd when the deal is extended into 2022 - but the Saudis and Russia have rejected any readjustments, fearing that other OPEC members will issue similar demands.
What's at stake? Abu Dhabi is attempting to force the group to accept its request or risk unraveling the alliance. At the extremes of the equation, crude prices could make an outsized move in either direction. Failure to reach a deal could mean crude could rise even higher, but OPEC+ unity may also break down, risking a free-for-all that could send prices crashing. That scenario played out last year when a disagreement between Saudi Arabia and Russia prompted an oil price war. Months after the dispute was settled, the UAE stirred things up again by threatening to leave the cartel.
"Failing to come to a deal may provide some brief upside to the market, with reports that output would remain unchanged," explained analysts at ING. "However, realistically it could also signal the beginning of the end for the broader deal, and so the risk that members start to increase output."
Outlook: The tensions between Abu Dhabi and Riyadh are going beyond oil. While the UAE's Crown Prince Mohammed bin Zayed and Saudi Crown Prince Mohammed bin Salman once had very close relations, the former has been flexing its own geopolitical aspirations via foreign policy moves towards countries like Israel and Yemen. The Saudis have also called for foreign companies to move their regional headquarters to Riyadh (many are now in Dubai), and following the OPEC standoff, the Kingdom moved to restrict citizens' travel to the UAE
Hi Auson, Oil has been rising by about $4 a month since last November in a pretty straight line. I am aware of the problems of relying on extrapolation, but this had been a very steady performance. The argument is that we are now in the upswing of the oil supercycle, but a reduction in exploration, exacerbated by the pandemic, and pressures from environmentalists (with good cause) are also helping. There are cracks opening in the agreement in the OPEC/non OPEC meetings (particularly UAE) but the unilateral reduction of the Saudis has been important. I agree with your opinion of Goldman, but they came late to the party in relation the bull forecast and are just playing catch up IMO
Hi Uncertain,
Good to see you pop up here again. I am watching but not posting much at the moment. What is there to say other than we've got down again and are a bit stuck. Looking good from next year and particularly the year after IMO but just have to hope gold stays strong for long enough for the market to start pricing that good news in.
Good luck playing oil.
Best wishes,
Prof
Gold's hourly channel is still intact - possibly steepened in fact.
10 year bonds now 1.358% so looking good for another step up IMO.
Or is that too simplistic.
As always, contradiction most welcome!
Sure it strange, jumped into HUM as well as both look very undervalued here and in an ideal world would both be much higher concidering their prospects and debt
Hopefully, as I said I still have my whole holding taken between 106 and 108 and hope your right. I held down to 101 and will continue to do so, just a strange day for the miners taking into account the break of 1800
lodan1,
Did you not notice all those 100 and 200 AT trade sells thats just hit ? I think the bottom is in now.
I'm still holding but starting but its starting to look a bit ominous if gold takes a turn down from here....not sure £1 will hold next time. Gold over 1% up cey down
darren123,
Thats what they want you to do, the Bull market doesn't like passengers.
All the best.
Thought we might be on the verge of a breakout but turning out to be another none starter, getting dissolutioned with the direction this is heading and starting to think about selling
uncertain,
Can we hear your Bull case for Oil. Its already near $80 Brent ! I think rise in oil is just getting a head of inflation. Saudi won't want it much over $75 as it will hurt world economies. If Goldman say its going to $100 its usually best to take the other side of that trade.
DXY pump in play as the S&P craters - it's never simple is it? :)
Hi Sotolo, Razorsedge tracked me down on CASP and said you had mentioned me. I am not currently invested in gold miners but amexpecting a larger increase in the price of oil. I just thought I would drop in here and let you know I am still alive.
The trade weighted dollar exchange rate may have more to do with the current rise in gold IMO. Is the cat dead? We shall have to wait and find out? Pobably is though.
30 year <2%
TREASURIES EXTEND ADVANCE; 10-YEAR YIELD FALLS TO 1.355%
Got yield?
ISM Services dropped to 60.1 in June, way below expectations. Employment and inventories dipped below 50.
#StagFlation baby
Make that 1.385