Abans Group Commodity World Round Up

20th Jul – 24th Jul

1. US weekly jobless claims rose for the first time since March against market expectations

Jul 23, 2020

The number of Americans filing for unemployment benefits rose to 1.461M, against a forecast of 1.30M. It was up by 107K last week for the first time in nearly four months. It suggests that the labour market was stalling, amid an increase in new COVID-19 cases, and depressed demand. This is the first weekly rise in claims, since the week ending March 28, when claims raced to a record 6.867M.

Source: Reuters

2. China’s June aluminium imports surge to an 11-year high

Jul 24, 2020

China’s June aluminium imports jump to an 11-year high on lower overseas prices. It imported 288,783 tonnes in June 2020, against 119,145 tonnes in May 2020, and an increase of 493.1% from June 2019. Imports were the highest since June 2009. Imports in the period, January to June, were 816,592 tonnes, up 219.2 per cent year-on-year, while exports were 2.37 million tonnes, down 20.6 per cent from a year earlier, leaving China a net exporter of 1.5 million tonnes, in the first six months of 2020.

Source: The Business Times

3. Energy Information Administration (EIA) reported a crude oil inventory build of 4.9 Million barrels

Jul 22, 2020

The Energy Information Administration (EIA) reported a crude oil inventory build of 4.9 million barrels, against a market expectation of a drop of 1.95 million barrels, for the week ending July 17. The EIA has said that inventories were 19 percent above the seasonal average, as demand for fuels remains subdued.

Source: Bloomberg

4. US existing home sales increased in June

Jul 22, 2020

The National Association of Realtors released existing home sales data on Wednesday. US existing home sales jumped 20.7% to a seasonally adjusted annual rate of 4.72 million units last month. Data for May was at 3.91 million units pace, which was the lowest level since October 2010.

Source: MarketWatch

5. Silver on CME touched the highest level since 2014, and has rallied more than 80% from 2020’s low

Jul 24, 2020

Silver prices on the CME rallied this week to the highest levels since 2014, on Thursday, and rallied more than 80% from the 2020 lows, as silver outperforms gold. Safe-haven demand has helped Silver and other precious metals, along with an EU deal worth 750 billion Euros of recovery fund. Industrial applications of silver, such as new battery technologies, along with other applications, and a reduction in the mining of silver, are creating a demand/supply gap.

Source: Money Control

6. Dollar Index touched a 22-month low

Jul 24, 2020

The Dollar Index is trading near the 94.50-60 level, after breaching the March, 2020 lows, and hitting levels that were last tested in October, 2018. With a fresh stimulus across the European Union, and further stimulus expected in the United States, the Dollar has continued to weaken.

Source: FXStreet

7. Germany's manufacturing sector stabilized in July

Jul 24, 2020

IHS Markit's flash Manufacturing Purchasing Managers' Index (PMI) edged up to 50.0 from 45.2 in June, against a market forecast of 48. It reaches the mark, which separates growth from contraction for the first time since December 2018, when activity grew. July's PMI registered firmly in growth territory, and well above expectations.

Source: Reuters

8. Sales of new homes in the US rose by a sharp 13.8% in June, followed by a 19.4% jump in May

Jul 24, 2020

According to the US Commerce Department, the sales of new homes in the US rose by a sharp 13.8% in June, followed by a 19.4% jump in May. The June gains pushed the sales of new homes to a seasonally adjusted annual rate of 776,000, a better-than-expected performance.

Source: AP News