Brazilian Equities End at Near 3-Week Low
The Ibovespa index fell 1.6% to close at a near three-week low of 101,215 on Tuesday, extending losses from the previous session dragged down by heavyweight ender Itau Unibanco Holding after its quarterly profit plunged 40%. On the economic data front, Brazil’s industrial production rose for the second consecutive month in June, beating market expectations as several businesses continued to resume operations following lockdowns due to the COVID-19 pandemic.
US Crude Oil Inventories Fall the Most Since 2019
Stocks of crude oil in the United States slumped by 8.6 million barrels in the week ended July 31st of 2020, following a 6.8 million drop in the previous week, data from the American Petroleum Institute showed. It was the biggest fall in oil inventories since the week ended July 19th, 2019.
Activision Blizzard earnings at 0.97 USD
Activision Blizzard (ATVI) released earnings per share at 0.97 USD, compared to market expectations of 0.68 USD.
Dow Logs 3-Day Win Streak
Wall Street extended its recent run of gains Tuesday, with the Dow Jones and S&P 5000 rising for a third straight session and Nasdaq hitting another record high as talks between White House and Democratic leaders in the US Congress were finally showing signs of progress as they tried to reach an agreement over another coronavirus relief bill. Meanwhile, US President Donald Trump said that Microsoft has 45 days to reach a deal with TikTok owner ByteDance to buy the firm's operations in the US. The Dow Jones added 166 points or 0.6% to 26,830. The S&P 500 climbed 12 points or 0.4% to 3307. The Nasdaq jumped 39 points or 1.4% to a new record high of 10,941.
Commodities Lift TSX
The Toronto stock market ended higher on Tuesday as shares of energy and resource companies rose alongside oil and gold prices. Gold prices soared past the key $2,000 mark for the first time in history as demand for the safe-haven metal was boosted by worries about the global economic impact of surging coronavirus infections worldwide. Investors also cheered upbeat domestic economic data, as the latest PMI figures showed Canada’s factory activity expanded for the first time in five months and at the steepest pace since January last year.
Canadian Dollar Hits 7-week High
USDCAD decreased to a 7-week low of 1.3331
Lithium Prices Remain Under Pressure
Lithium remained at record low levels in August, trading below 41,000 yuan per tonne as demand remained subdued in China’s lithium market even after economic activity resumed following coronavirus-induced lockdowns. Still, lithium prices are poised for a rally in the next few years, mainly because EV sales are expected to jump, driven by the so-called green recovery plans.
Copper Prices Remain Supported
Copper prices have been hovering around $2.89 per tonne in early August, not far from a more than one year high of $2.98 touched in July, on investors hopes for a recovery in metals demand following global efforts to quickly restart economic activity from the coronavirus-induced slump. On the supply side, the pandemic raised questions over the biggest copper producer’s ability to maintain output levels in the coming years to satisfy growing global demand.
Steel Prices Ease from 6-Month High
Steel prices in August have been hovering around 3,750 Yuan/MT, below July’s six-month high of 3,800 Yuan/MT, but still backed by stronger demand from China, the world’s largest steelmaker, after the economy opened up following months of virus-induced lockdown. China will increase its infrastructure construction in the third quarter of the year to offset the negative impact of the coronavirus pandemic on the economy.
Iron Ore Hold Above $100
Iron ore remained above $100 per tonne in August, trading close to highs not seen in a year, as robust steel production in China, the world's top metals consumer, has increased demand for raw ingredient iron ore. The Chinese government recently pledged to increase spending on infrastructure construction to offset the impact of the pandemic on the economy.
Corn Hits Near 4-year Low
Corn decreased to a near 4-year low of 308 USd/BU
Coal Prices Rise to 4-Month High
The coal market kicked off August on a high note, breaking the $57 level for the first time since April as power consumption increased in the developing world amid efforts to quickly restart economic activity from the coronavirus-induced slump. Still, coal prices are set to remain pressured by the rise of renewable energy sources, especially wind and solar power.
Crude Oil is up by 2.02%
Crude Oil WTI increased 2.02% to 41.83 USD/Bbl
Silver Hovers Near 7-1/2 Year High
Silver prices breached $25 an ounce in August, a level not seen April of 2003, with investors seeking safe-haven assets amid fears about the economic fallout from rising COVID-19 cases globally. Silver futures have been tracking gold prices, as looser monetary policies around the world to counter the economic blow from the pandemic sparked concerns of inflation, while simmering US-China tensions have dented hopes for a swift economic recovery.
Loonie Appreciates on Tuesday
The Canadian dollar appreciated to a 7-week high of 1.33 against the dollar, after latest data showed Canada’s factory activity expanded for the first time in five month and at the steepest pace since January last year, as businesses continued to resume operations following lockdowns related to the coronavirus pandemic. The currency was also supported by a rise in oil prices boosted by hopes for a fresh US stimulus package. On July 15th, the Bank of Canada held its benchmark interest rate at the effective lower bound of 0.25% and said that it will continue its quantitative easing program. Meantime, Ottawa is rolling out more than CAD 170 billion of direct aid to support the economy amid the pandemic
Spanish Stocks End Above 7,000
The IBEX 35 rose 35 points, or 0.5% to 7,010 on Tuesday, extending a 1.4% gain in the previous session, after recent data showed the number of people registered as unemployed in Spain fell for the first time in five months in July following record rises in March and April amid the easing of coronavirus lockdown restrictions. Also, hopes for a fresh US fiscal stimulus package and better-than-expected manufacturing data from the US, Europe and Asia lifted investors’ sentiment. Merlin Properties was among the best performers after the Expansion newspaper reported that the Canadian infrastructure fund Brookfield is studying a possible takeover. On the other hand, the regions of Iscar and Pedrajas have been put back into lockdown due to a surge in coronavirus cases. Spain reported 8,532 new Covid-19 infections since Friday, bringing the country's total to 297,054.
Brent Crude Rises Above $44
Brent crude futures reversed earlier losses to settle at $44.72 a barrel on Tuesday amid hopes for a fifth US coronavirus stimulus package as the White House and Democratic congressional leaders reported some progress in discussions. Earlier this session, Brent crude was trading below $44 a barrel amid concerns over a spike in coronavirus cases and its effects on fuel demand recovery and worries about oversupply as major oil producers started reducing crude production this month, adding about 1.5 million bpd to global supply.
French Shares Rise for 2nd Day
The CAC 40 added 17 points, or 0.4% to 4,893 on Tuesday, extending a 2.1% gain in the previous session, with banks and automotive shares among the best performers led by Natixis, Peugeot and Renault. Meantime, investors hope for signs of progress of a fresh US fiscal stimulus package. On Monday, rules on wearing masks outdoors in the hardest-hit parts of France took into effect as the number of coronavirus infections continue to rise.
Italian Stocks Extend Gains
The FTSE MIB rose 234 points, or 1.2% to 19,614 on Tuesday, extending a 1.5% gain in the previous session, boosted by strong earnings results. Bank and automotive sectors were among the best performers with Illimity Bank reporting strong quarterly results, doubling profits in Q2. Meanwhile, global market sentiment was supported by the optimism of a fresh US fiscal stimulus package and upbeat manufacturing PMI data from the US, Europe and Asia.
UK Stocks End Flat
The FTSE 100 closed near the flat line at 6,036 on Tuesday, amid a mixed bag of corporate earnings. Drinks giant Diageo reported a 47% plunge in operating profits and an over 8% slump in net sales as pubs, bars and restaurants across the globe were shut due to the pandemic, while energy giant BP jumped even as it cut its dividend for the first time in a decade after reporting a record $6.7 billion loss in the second quarter. The re-imposition of some restriction measures in some parts of England continued to worry investors, while hopes for a fresh US fiscal stimulus package and better-than-expected manufacturing data from the US, Europe and Asia helped to support sentiment.
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