Exchange & Stocks
US stock markets just enjoyed their best week of the year on speculation that the Federal Reserve would once again ride to the rescue of equities and inflate asset prices by cutting rates.
The S&P 500 index is sporting double digit percentage gains so far this year. Meanwhile, the S&P GSCI All Commodities index is down 14% over the past year.
Apart from all things gold, Incrementum's 13th annual In Gold We Trust report also features broader takes on the environment for raw materials and argues that in a historical context commodities remain undervalued compared to stock markets in the extreme.
Plotting the S&P GSCI and the S&P 500 all the way back to 1970 shows the indices long-term upward trend line and the current disconnect between commodities and equities:
To return to this trend line – which happens on average every 6 to 8 years – the S&P would have to fall by 44% and the GSCI to rise by 112%.
This is a scenario that seems highly unlikely, if not impossible, at the moment. However, a glance at the following chart or at the history books puts this alleged impossibility into perspective.
Russia is willing to step in to help Iran export its oil while the country is struggling to keep the oil flowing due to the new US sanctions.
As the mining sector strives to secure safety improvements, productivity gains and other benefits offered by a fully autonomous mine, a new report, Accessing the Fast and Furious Pace of Autonomy to Transform Mining by Clareo and Twin argues the closed and proprietary systems of the major original equipment manufacturers (OEMs) are a barrier.
Shares in Ecuador-focused SolGold (LON, TSX:SOLG) jumped on Friday, after it announced that the country’s Constitutional Court had rejected calls for a referendum on mining in Imbabura, the province in which the company’s flagship Cascabel copper-gold project is located.
Adani Group has kicked off construction at its controversial Carmichael coal and rail project in Australia’s Galilee Basin after receiving last week approval from the Queensland government to break ground.
JSW Steel - India's largest steel maker recorded total iron ore sourcing at 1.73 MnT in May'19. The sourcing witnessed 36% drop M-o-M as against 2.71 MnT in Apr'19. On yearly basis, sourcing fell 42% in May'19 as against 2.98 MnT in May'18.
SteelMint learned from industry participants that Turkish steel mills have taken a pause from buying activities after observing successive falling in scrap prices since the past couple of weeks.