WK 24, Asia nos, etc..14 Jun 2021 06:57
With 4 of the major Far Eastern bourses closed for holidays trading is light. The Nikkei is up 167 boosted by Tyre makers and Shipping Companies. Japanese Banks slipped back on US Treasury yields posting their bigest drop of the year, 11% last week. Investors are wary of taking big bets ahead of the Fed's 2 day monetary policy meet this week.
Gold prices weak of late and down 2% ytd usually do well when other investments and economic nos are flashing warning signs. Monthly consumer price indices in the US and UK jumped in April, rising at their fastest rate since 2009. Prices of Chinese goods leaving the factory have risen to a 3 year high. US Inflation is on the rise at an annual rate of 5% (May) and has been climbing steadily since Jan (1•4%) and prices of most things (energy, cars, food, gas, clothing etc..) are rising fast. Despite this Economists think its a temporary phase.
Gold mining companies have been popular with Fund Managers and have posted 26% gains since early March. With a weaker trend in USD and the massive US defecit investors look to Gold as a hedge. Countries will be loathe to weaken their currency as they are so indebted, thus Gold becomes a store of value despite producing no income, dividends or interest. Mrkt sentiment is the big driver here.
Latest:- Oil $73•03. Vix 15•6.
Gold $1864. Copper $4•527.
Silver $27•925. $1•411. €1•166
FF +20. DF +18.
Morning all.