Exclusive KE Report Commentary – Mon 10 Feb, 2020

US Markets Are Telling A Very Different Story From Copper and Oil

There has been a renewed focus on the discrepancy between the performance of US equity markets vs copper and oil. Peter Hanks, Analyst over at Daily FX joins me to share his thoughts on how the US markets continue to outperform the industrial commodities. Also if this can continue based on current central bank policies.

Click here to visit the Daily FX and follow along with what Peter is writing about.

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Comments:
  1. On February 10, 2020 at 11:11 am,
    cfs says:

    President Trump was saying this morning that Xi was anticipating a burn off of the problem of nCoV in April and that oil would bounce back then due to Chinese factories opening at maximum output to meet un-met demand.

    It is clear world trade has been turning down for some time:
    https://stockcharts.com/h-sc/ui?s=$BDI

    Logic would imply even the US stock market must respond soon to parallel other markets.
    (It might be noted, however, that the US GDP is highly dependent on service as opposed to manufacturing.)

  2. On February 10, 2020 at 12:02 pm,
    Nigel says:

    Very educated comments from Peter and cfs, I say that because they mirror what I think, so they must be right…

    • On February 10, 2020 at 12:22 pm,
      cfs says:

      Good one, Nigel. Nice to have someone not wanting to kill the messenger for a change. Thanks.
      I do not anticipate a dramatic collapse of the stock market though. I know by any rational measure and certainly by historical measures the markets are at all time highs, but interest rates are at all time lows.
      With regard to copper, with most electric vehicles consuming a 100 pounds of copper, I’m not sure the drop in copper will be all that long lasting, either.
      The CPI just came out for China. A dramatic increase of 21% yoy on food, mostly caused by pork and chicken increases, could auger food price inflation in the U.S. It’s early to project yet, but it also appears we might have yet another late planting season with all the snow in the mid-west.