People wanna go electric on cars, which get nickel to spearhead metals’ advance
Europe’s stocks kicked off the month with a blast. Basic material shares underpinned a rally with nickel leading the surge in industrial metals.
Yesterday Trafigura Group Pte and Glencore revealed bullish forecasts on nickel because of the popularity of electric cars. That’s cause nickel sulphate is a key component of the lithium batteries electric cars use.
That news caused nickel to jump 3.9% to the strongest since June 2015, reaching 12,670 buck a tonne. Things are really looking up for the global economy and industry.
Stoxx Europe 600 climbed 0.6% with most industries gaining. Earlier in Asia, stocks from Sydney to Tokyo were reinvigorated from Sony’s mighty earnings, while optimism for Trump’s tax plan remains on track.
US shares continue to another all-time high
More evidence the global economy’s on a firm footing. Across the world from Japan through Europe earnings keep pouring ahead of expectations. This all talks of a sustainable growth, that has engulfed the whole planet.
Everything risky on the asset spectrum – from stocks to oil and the dollar went up. Commodities especially are having a blast of a day – WTI already is above 54 bucks and keeps rising to an 8-month high. Long gone are the fears of a shale glut. The world is guzzling like crazy!
The S&P headed for a fresh record, Europe’s at a 2-year high and from Tokyo to Sydney was also on a green territory, as companies’ profits keep skyrocketing. The dollar made headway, as it turned out companies have been hiring more than expected.
With all the excitement on the markets, the Fed’s meeting today and it is expected to hold rates still and raise them in October. All the while Bank of England will likely lift rates on Thursday.