Yazar: Geoffrey Smith
Investing.com – Industrial and agricultural commodity prices have seen highs for many years, albeit for different reasons. Tesla (NASDAQ 🙂 is expected to report a 66% increase in revenue, but it looks set to have a quiet opening ahead of stocks, reports of mega-capacity tech names and the Fed meeting. Durable goods orders for March will be shared. The EU is preparing to allow US tourists again, and oil is on the decline amid concerns that the growing Covid-19 crisis in India will not be reflected in this week’s OPEC + meeting.
What you need to know in financial markets on Monday, April 26th:
1.Commodities soar due to recovery hopes and weather conditions
While copper prices saw a 10-year high, soybean, wheat and corn traded near eight-year highs, with post-epidemic liquidity shaking every boat in sight.
Copper has been on the rise throughout the year, but purchases have increased in recent weeks amid the demand for demand from the automotive industry, which has accelerated this year’s transition to electric vehicles.
US soybean, wheat and corn futures are close to an eight-year high due to higher short-term supply concerns. A cold wave in the US delayed the planting of crops in many more regions – something that would lead to a reduction in the harvest.
2.India’s Covid-19 crisis worsens
India also broke a record on day five in the number of new Covid-19 infections and deaths. The nationwide increase in the coronavirus has further suppressed the health sector with limited resources.
More than 350,000 new cases and 2,812 deaths were recorded in the country on Monday, and many analysts estimate that these figures are largely underreported, especially in the poorer rural areas of the country. There are reports of oxygen depletion for patients on respirators in hospitals in intensive care.
Meanwhile, the country’s financial markets picked up on Monday. The Nifty 50 index closed 1.0% higher, while the rupee gained 0.3% against the dollar.
3. Stock markets will open calmly, Tesla will report, Fed is expected, durable goods orders will be announced
US markets will open calmly ahead of the Fed’s last meeting and earnings reports. The weak data calendar includes durable goods orders for March.
and futures did not change, but fell by a quarter point.
Tesla leads the earnings calendar, but will report after closing. It is expected to share 74 cents per share earnings on top of $ 10.42 billion revenue, up 66% from last year. Check Point Software shared results slightly above expectations in both indicators.
4. EU prepares to reopen doors to US tourists, Hong Kong and Singapore will form travel corridor
There is also better news on the Covid-19 front when it comes to international travel. European Commission President Ursula von der Leyen told the New York Times that the EU wants to allow fully vaccinated US passengers to come to the region. This could support US airlines and payment companies and Europe’s devastated tourism industry.
The EU has banned travel of secondary importance outside the bloc for a year. This news emerged shortly before Italy started loosening some restrictions.
On the other hand, Singapore and Hong Kong said they will establish a travel corridor between the two cities to allay concerns about Covid-19 contagion.
But not all news is good. In the environment of the new restriction regime that took effect on Saturday, Germany’s business prospects unexpectedly weakened, according to the IFO survey.
5.Oil fell due to concerns about demand in India ahead of OPEC
Crude oil prices weakened on concerns that escalating problems in India would prevent a decline in global stocks.
Reuters gave analysts estimates that quarantines in India could lead to a demand loss of 300,000 barrels per day. Now the question is: will the world’s major exporters postpone or slow down the production growth they are planning with this in mind? OPEC’s Joint Technical Committee meeting has just started and is expected to end with a formal recommendation to ministers on production policy.
The OPEC + block is currently willing to increase production by 2 million barrels per day during the second quarter.
Brent was down 1.8% to $ 61.01, while Brent fell 1.8% to $ 64.22.