Home Business Oil futures reach 13-month high as global stocks advance with U.S. markets shut

Oil futures reach 13-month high as global stocks advance with U.S. markets shut

Oil futures reach 13-month high as global stocks advance with U.S. markets shut

The rally in commodities that some say is the start of a supercycle continued on Monday, buoying resource stocks.

The West Texas Intermediate contract
CL.1,
+1.78%,
the leading benchmark for oil in the U.S., topped $60 a barrel for the first time since Jan. 2020. Other commodities including platinum
PL00,
+2.66%
also advanced.

“The robust recovery in oil prices and industrial metals over the past couple of months is driving the idea of a new commodities supercycle in which prices remain above-trend for many years to come,” said Hussein Sayed, chief market strategist at FXTM.

Also read: The fifth commodity supercycle has started, says leading JPMorgan analyst

Up 12 of the last 15 weeks, the Stoxx Europe 600
SXXP,
+0.95%
rose 0.6% in morning trade, with gainers including miners Rio Tinto
RIO,
+3.24%
and BHP Group,
BHP,
+3.83%
and oil producer Total
FP,
+3.15%.

The Nikkei 225
NIK,
+1.91%
rose 1.9% in Tokyo to a fresh 30-year high, and the Kospi Composite
180721,
+1.50%
rose 1.5% in Seoul. The U.S. market is shut for the Presidents Day holiday, and markets in Hong Kong and China are closed for Lunar New Year. U.S. stock futures
ES00,
+0.47%

YM00,
+0.53%,
which are trading electronically, advanced.

The rollout of vaccines and progress on the Biden administration’s proposed $1.9 trillion stimulus is helping to fuel moves in global asset markets this year, the so-called reflation trade. Last week, the yield on the 10-year Treasury
TMUBMUSD10Y,
1.209%
topped 1.20% for the first time in a year.

Vivendi
VIV,
+16.02%
shares traded 18% higher in Paris after it said it would distribute 60% of subsidiary Universal Music Group’s share capital to shareholders and list the music label in Amsterdam by the end of the year. Investment group Bollore
BOL,
+11.92%,
holds more than a quarter of Vivendi, gained 13%.

Lanxess
LXS,
+4.24%
rose as much as 6% after agreeing to buy U.S.-based specialty-chemicals company Emerald Kalama Chemical for $1.04 billion from private-equity firm American Securities.

Other notable moves on Monday included the U.S. dollar falling back below 7 Turkish lira
USDTRY,
-0.89%
for the first time since August. Turkey’s central bank more than doubled interest rates, to 17% from 8.25%, since September.

This article is auto-generated by Algorithm Source: www.marketwatch.com

Related Posts

0

Ad Blocker Detected!

Refresh