Soft monetary policy outlook to boost commodity appetite [Video]
Nikkei index is mostly flat on Tuesday and the yen consolidates above 151 following yesterday’s threat from a Japanese official about a potential intervention to stop excessive bleeding in the yen.
The dollar index gave back field yesterday and the S&P500 consolidated near ATH. Super Micro Computer jumped 7%, while Apple is offered near $170 per share despite chatter that the company could team up with the Chinese Baidu – the Chinese equivalent of Google that’s also active in AI, in hope to boost its iPhone sales in China.
Zooming out, a period of loosening policies will likely support the equity valuations beyond the Big Tech, back bond valuations, but also commodities. Rebound in Western manufacturing, Chinese stimulus and geopolitical risks should back copper, aluminum, gold and oil. And if commodities perform well, the British FTSE 100 –heavy in energy and mining stocks – should also see a boost.
Reprinted from FXStreet，the copyright all reserved by the original author.
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