Stocks in Russia Hit All-time High
MOEX increased to an all-time high of 3612
Copper Resumes Rally to 10-Year High
Copper rose to as high as $4.4 per pound on Monday, its highest level since August 2011 as speedy vaccination rollouts and trillions in dollars of economic stimulus lifted hopes of a robust global economic recovery and higher demand for metals. After recording record growth in the first quarter, China’s economy continued to recover in April with strong exports and improving business confidence. Adding to bullish sentiment, banks like Goldman Sachs and Citi lifted their bets on copper consumption this year, focusing on its longer-term role in a carbon-free world. On the supply side, port operations in major producer Chile have been disrupted by a strike over pension funds..
Gold Below 2-Month Highs
Spot gold was little changed around $1780 an ounce on Monday, below two-month highs of $1,798 an ounce hit last week, amid a slightly weaker dollar and Treasury yields and as investors digest rising coronavirus infections and await the Fed interest rate decision during the week. Covid-19 cases are surging at a record pace in India and in Japan, some cities declared the state of emergency, boiling demand for safety. At the same time, the Fed is expected to keep its ultra-easy monetary policy while fresh data for the US continues to point to a strong economic recovery. Gold finished last week little changed.
Japanese Yen Extends to 2-Month Highs
The Japanese Yen lifted 0.139 points or 0.12% to 107.738 against the US Dollar on Monday, extending to the highest levels in 2 months after Japan on Friday declared “short and powerful” states of emergency for Tokyo, Osaka and two other prefectures amid a surge in novel coronavirus infection rates last week. Local 10-year bond yields lifted from 10-week lows to 0.078%, while US 10-year rates held near 6-week lows of 1.57%. In the US, data last week showed that US factory activity powered ahead in early April, while retail sales jumped to a record high in March and hiring accelerated. Investors now anticipate the BoJ’s monetary policy decision and the US FOMC meeting later this week. On the data front, Japan’s leading index hit its highest in over 2 years in February, while the coincident index was revised higher to 89.9 from a flash reading of 89.0.