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Stocks Rally As Energy And Metals Keep Climbing

Published 2016-11-22, 08:34 a/m
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Stock markets around the world are rallying again today. US index futures are up 0.2% with the S&P trading up at new highs again, confirming the previous breakout by the Dow. In Europe the FTSE is up 0.9% while the Dax is up 0.5%.

Energy commodities continue to climb on speculation a production deal could be reached soon ahead of the November 30 big OPEC meeting and on the sudden arrival of winter in the East and Midwest. ‎Metals are also rallying again today with copper up another 1.4% and silver up 1.3%.

Commodity action is driving rallies in resource stocks and also resource currencies with CAD, NOK, AUD and NZD all posting gains overnight. Gold is also on the rebound along with JPY, EUR and GBP to a lesser extent as USD's big rally nears exhaustion.

It's another light day for data with the highlight being Canada retail sales. Tomorrow brings a flurry of US numbers. Today stateside the focus is on Donald Trump's video outlining his plans for his first 100 days in office. In the video he outlines plans to walk away from the Trans Pacific Trade Partnership (TPP) and replace it with more favourable bilateral deals. This could support stocks in general as it indicates the administration remains open to trade under better terms for the US.

He also indicated plans to ‎emphasise manufacturing at home, invest in stronger cyber security and loosen restrictions on clean coal and shale energy production. This could influence trading in the auto, steel, manufacturing, coal, energy, and IT security sectors today, we'll see if this has been priced in already or if anticipation has room to grow even further. He did not mention NAFTA or Mexico sparking a relief rally in MXN but it may only get so far as decisions related to Mexican trade and immigration may come later. There also was no mention of infrastructure spending in the video.

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