Fundamental Comment

Commodities climb on optimism about global growth


Commodities climbed on Thursday amid optimism about global growth and after the release of strong corporate earnings.

Geopolitical and trade tensions eased as the U.S. mentioned it has already begun negotiations with North Korea and Russia leader Vladimir Putin was said to be looking for calming down the jittery situation with the United States.

In China, a Commerce Ministry spokesman said his country was hoping trade frictions with the U.S. will not mount.

U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe agreed to work closely on bilateral trade.

The ease in geopolitical and trade tensions and hopes for compromises between major powers helped Asian shares to jump to a one month high.

Oil prices reported a new high today at $69.11 a barrel, the highest level since December 2014, after a more than forecast drop in U.S. crude inventories.

The EIA government report released on Wednesday signaled a 1.1-million-barrel decrease in the week through April 13, compared to estimates of 0.5-million-barrel drop.

The report provided clues of strong demand on crude, helping oil prices to add more than 3 percent the previous session.

Brent crude futures traded higher for a second straight session at $74.23 a barrel, a level not touched since November 2014.

Gold led gains in metals, as it extended its rise for a third straight session to $1353.17 an ounce, taking advantage of the dollar index's retreat to 89.28.

Accordingly, commodities' currencies, Aussie, Kiwi and Loonie, soared against the green currency, ahead of U.S. manufacturing gauge and unemployment claims data.

Share Article