USA, PMI, Yields & Construction
Comments of particular interest are noted with ‘*’.
- The USA Federal Reserve Chairman has not indicated any more central bank support, and has not reversed the prevailing USA central bank settings.
- Bond yields have lifted upon interpretation of his speech as a signal that the USA central bank may have reached some limits of monetary policy expansion, resulting in a selloff of bonds.
- The Chairman said the banks is monitoring financial conditions, and that the USA economy is a long way from recovery.. His view is that prices will rise but any increase in inflation will be transitory, and does not expect inflation to exceed 2%.
- Increased oil prices also contributed to bond market nerves, worrying some about prospect of inflation (which is usually not good for bonds).
- USA PMI indicates a strong outlook. USA bond yields starting to lift.
- Overall, while still jittery and volatile, the global economy continues to recover.
- A number of sound base metals projects are being advanced through evaluation toward production, as their respective markets continue to tighten.
*Copper May be some weakness ahead, though economies outside China are recovering.
Cobalt Co price holding ground amid others’ declines.
*Nickel Tesla to take stake in Goro mine with Trafigura. Tesla needs security of Ni supply.
Zinc & Lead China’s Zn production to increase in 2021. TC’s for Zn & Pb concs are stable..
*Tin Boom in demand for electronic products.
Aluminium China-Inner Mongolia to cap aluminium production.
Gold Fitch forecasts avg 2021 Au price higher than current spot price.
*Platinum & Palladium Palladium price forecast to hit all-time highs in 2021. (CHN, IPT)
*Oil OPEC+ extends production cuts by a month, into April. LVPCI / SHCC to be revised / to come.
Coal HCC Dec20Qtr contract price established.
Iron Ore Australia reports record iron ore shipments.
Shipping Panamax rates fell this week while Capes and Supramax rates increased.
*USA Treasury Yields: Yields lifting – USA Fed Chair indicates limits of monetary policy expansion.
USA PMI: Strong outlook as key first four segments have positive growth and are .50.
USA Construction Spending: Broadly positive growth.