Oil rose on expectations of a new US stimulus package that would push up demand
Oil prices rose during the session last night on the expectation that the US will increase the aid costs for those affected by Covid-19 – a move that could increase fuel demand, thereby pulling the economy. growth follow.
At the end of this session, West Texas America (WTI) oil rose 38 US cents (0.8%) to 48 USD / barrel; Brent oil rose 23 US cents (0.5%) to 51.09 USD / barrel.
“We are seeing a resurgence in the oil market after the US approved the new stimulus package,” said Gary Cunningham, market research director at Tradition Energy.
US President Donald Trump signed a draft of increasing direct aid to Americans damaged by the Covid-19 epidemic, worth up to $ 2,000. However, it is still unclear whether Republicans in the US Senate will support the move. Majority leaders spared
Donald Trump on increasing direct COVID-19 aid to Americans who suffered from the pandemic to $ 2,000. (Full story)
It is still unclear whether Republicans in the US Senate would support the move. Mitch McConnell, a Republican senator and the leader of the majority in the US Senate, on December 29 rejected a Democratic call to ask the Senate to approve the stimulus package that Trump had. sign, although he said the Senate will look into the matter this week.
Gold rose on speculation about inflation after the US stimulus package
Gold prices increased in the past session because investors expected additional US economic stimulus measures to increase the attractiveness of this metal and put pressure on the dollar to fall.
Specifically, the spot gold price increased by 0.3% to $ 1,877.51 / ounce; gold futures in February 2021 increased 0.1% to 1,882.9 USD / ounce.
“Investors are preparing for a much stronger stimulus when (President-elect Joe Biden comes to power),” said Edward Moya, senior market analyst at OANDA.
The dollar index fell by 0.3% against a basket of major currencies, making gold more attractive to investors who buy gold in other currencies.
European stocks ended the session with a 10-month high of expectations and a major stimulus package, while Republican Mitch McConnell promised that this week they would consider Trump’s proposal. is to raise the level of Covid-19 relief from 600 USD to 2,000 USD.
Lowest aluminum 1 month
Aluminum prices fell to a 1-month low as investors feared output would increase resulting in a surplus.
On the London floor, aluminum for 3-month delivery fell 2% to $ 1,989.5 / ton at the close of the transaction, after a moment down to only $ 1,982, the lowest since November 27. On the Shanghai floor, aluminum prices also fell 2.9% to CNY 15,295 ($ 2,341.01) / ton, the lowest price of nearly 6 weeks.
According to Capital Economics, last week’s figures show that global output of pre-processed aluminum increased 4.1% year-on-year, while daily production increased to the second record high in history.
“With aluminum, you cannot argue that there is a shortage in the market. Production is going up quite a lot and new capacity is being added,” said independent consultant Robin Bhar.
Copper rose, tin highest 1.5 years
Copper prices rose because the US stimulus package would help boost economic activity.
On the London floor, copper delivered after 3 months increased 0.9% to 7,853.5 USD / ton, because investors were excited by the US President’s signing the bill to support people affected by Covid-19.
Analysts and investors predict copper prices will outperform other base metals next year because of this metal. OK widely applied in many fields.
Tin prices last session also increased by 0.9% to 20,360 USD / ton, the highest since April 2019. The amount of tin stored in the warehouse of the floor LME is still very little.
Black metal fell due to weak demand due to cold weather
Iron ore prices in China fell in the past session, according to which the reference contract fell below 1,000 CNY / ton due to reduced demand due to cold weather forecast is very cold and concerns about Covid-19 cases. increase in this country.
Iron ore futures in May 2021 on the Dalian floor decreased 2.5% to 1,011 CNY (154.81 USD) / ton at the end of the session, after falling below 995 CNY / ton at a time.
China has issued an orange warning about a new cold spell, with temperatures in most of its central and eastern regions falling by about 16 degrees.
The country also announced there were 27 new Covid-19 infections on the morning of December 28, of which 15 were in the community, forcing some local authorities to adopt new containment measures.
Rebar prices on the Shanghai Exchange last session also fell 1.5% to CNY 4,234 / ton, HR coil fell 2.3% to CNY / ton, while stainless steel fell 2.6% down. 13,295 CNY / ton.
Sugar increases
The price of raw sugar increased in the session on December 29, although the rain situation in Brazil continued to improve, favorable for the development of sugarcane.
Ending the session, crude sugar futures in March increased 0.06 US cents to 15.04 US cents / lb. Even so, the price is still well below the 1-month high reached in the previous session (15.13 US cents).
White sugar delivered in the same period also increased by 3.2 USD to 411.80 USD / ton.
Coffee recovery
Arabica coffee prices recovered after falling sharply in the previous session because the real currency got stronger and the price dropped in the previous session, stimulating investors to buy in. Specifically, the contract in March increased 2.05 US cent (1.7%) to 1,254 USD / lb, regaining most of what was lost in the session 28/12. Robusta delivered in the same term steadily at 1,383 USD / ton.
Rubber in Japan increased, in China decreased
Rubber prices on the Japanese market increased in the past session, with a term contract in June next year on the floor of Osaka increased by 3.7 JPY (0.0357 USD) to 230.8 JPY / kg.
Meanwhile, prices in Shanghai fell due to weak demand due to lower operating rates at tire factories following the introduction of electricity restriction measures by the Government and the government of some Northern provinces. environmental measures to prevent dust. May contract on this floor decreased by 285 CNY (43.65 USD) to 13,715 CNY / ton.
The rubber market is being supported by lower output in major producing countries, including Thailand, Malaysia and Indonesia, due to the dry season.
Prices of some key items on the morning of December 30
