2% falls on the Nasdaq as Powell speaks


Commodities reach their highest level since 2013

(Bloomberg) – Commodities hit their highest level in nearly eight years amid growing investor appetite for assets from oil to corn. Hedge funds have rallied around what has become The biggest bullish bet for the asset class in at least a decade, a collective bet that government stimulus coupled with near-zero interest rates will boost demand, drive inflation and further weaken the US dollar as the economy recovers The Bloomberg Commodity Spot Index, which tracks the price movements of 23 commodities, rose 1.6% on Monday to its highest level since March 2013. The indicator has already risen more than 60% since it reached a four-year low in March 2020. Advances benefited from copper, which topped $ 9,000 per metric ton for the first time in nine years, before spreading gains further offshore tes. Oil also rose to its highest level in more than a year on speculation that global supplies are shrinking rapidly, while coffee and sugar also rose. “People who have really ignored commodities for a long time now they are starting to position themselves, ”said Bart Melek, head of commodity strategy at TD Securities. “The implication is that this could go on for a while. It’s very much an equation of scarcity expectations. ”JPMorgan Chase & Co. said earlier this month that commodities appear to have entered a new supercycle, an extended period during which prices are well above trend. long-term. That echoes other similar comments, such as those by Goldman Sachs Group Inc. Commodities have seen four comparable cycles in the last 100 years. The asset class is generally considered a good hedge against inflation, which has recently become a concern for investors. Commodities may rise as an unintended consequence of the fight against climate change, which threatens to restrict oil supplies while increasing demand for the metals needed to build renewable energy infrastructure and make batteries and electric vehicles, they said on 10 May. JPMorgan analysts led by Marko Kolanovic February. Copper is rising amid a broad rally in metals, from iron ore to nickel. The industrial commodity has doubled in value from a low in March, also driven by the rapid decline in physical markets and prospects for a rebound in economic growth. “The megatrends we see around world population growth, The issues of electrification and the energy transition augur well for demand for commodities in the medium and long term, ”Mike Henry, chief executive of mining giant BHP, said last week in a Bloomberg Television interview. Commodities have a huge impact on the cost of living, as they can affect the price of fuel, energy, food and construction projects. They also help shape the terms of trade, exchange rates, and ultimately policy in commodity-dependent countries such as Canada, Brazil, Chile, and Venezuela.Original Note: Commodities Hit Highest Since 2013 Amid Inflation Concern (3) For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP

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