May 2024 Market Insights - Mixed Performance in Commodity Markets

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Market Insights: May 2024 In May 2024, financial markets demonstrated nuanced dynamics across various sectors. The US dollar index fell for the first time this year, influenced by underwhelming GDP ...

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The US dollar index fell for the first time this year, influenced by underwhelming GDP ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/may-2024-market-insights-mixed-performance-in-commodity-markets\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>May 2024 Market Insights - Mixed Performance in Commodity Markets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMay 2024 Market Insights - Mixed Performance in Commodity Markets\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-02 12:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/may-2024-market-insights-mixed-performance-in-commodity-markets><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Market Insights: May 2024\nIn May 2024, financial markets demonstrated nuanced dynamics across various sectors. The US dollar index fell for the first time this year, influenced by underwhelming GDP ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/may-2024-market-insights-mixed-performance-in-commodity-markets\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4550","symbol_name":"红杉资本持仓","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/may-2024-market-insights-mixed-performance-in-commodity-markets","article_id":"2440168111","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/may-2024-market-insights-mixed-performance-in-commodity-markets","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2440168111","pubTimestamp":1717302903,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"In May 2024, financial markets demonstrated nuanced dynamics across various sectors. The US dollar index fell for the first time this year, influenced by underwhelming GDP figures and concerns over rising debt levels, which impacted bond yields and resulted in a surge in monetary metal prices. US equity markets saw gains, particularly led by mega-cap tech stocks, with the S&P 500 recording its best May performance since 2009. However, most other S&P500 firms outside of the \"magnificent 7\" continue to struggle as rising interest rates bite into profit margins.The growth in artificial intelligence  data centres and the resulting infrastructure has structurally increased the demand for energy and positively affected industrial metal prices. Moreover, gold and silver prices surged to significant highs, driven by central banks' diversification amid geopolitical tensions, while base metals experienced volatility due to fluctuating demand and supply issues. Despite a mixed outlook for commodi","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4550":"红杉资本持仓","URNM.AU":"BETASHARES GLB URANIUM ETF","BK4588":"碎股","URNM":"Sprott Uranium Miners ETF","URA":"Global X Uranium ETF","FDN":"First Trust Dow Jones Internet I","BK4585":"ETF&股票定投概念"},"translate_title":"2024年5月市场洞察-大宗商品市场表现好坏参半","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"URA":1,"URNM":1,"URNM.AU":1,"FDN":0.73},"content_text":"Market Insights: May 2024\nIn May 2024, financial markets demonstrated nuanced dynamics across various sectors. The US dollar index fell for the first time this year, influenced by underwhelming GDP figures and concerns over rising debt levels, which impacted bond yields and resulted in a surge in monetary metal prices. US equity markets saw gains, particularly led by mega-cap tech stocks, with the S&P 500 recording its best May performance since 2009.  However, most other S&P500 firms outside of the \"magnificent 7\" continue to struggle as rising interest rates bite into profit margins. \nThe growth in artificial intelligence (AI) data centres and the resulting infrastructure has structurally increased the demand for energy and positively affected industrial metal prices. Moreover, gold and silver prices surged to significant highs, driven by central banks' diversification amid geopolitical tensions, while base metals experienced volatility due to fluctuating demand and supply issues. Despite a mixed outlook for commodities like nickel and copper and a contraction in China’s manufacturing sector, the overall commodity market remained resilient. \nThese market movements underscore a complex investment landscape, marked by persistent volatility and requiring strategic navigation amid evolving fiscal and monetary policies.\nDollar Index Decline: A Year’s FirstFor the first time in 2024, the US dollar index experienced a decline, driven by disappointing GDP data and mounting fears over the \"debt cliff.\" Bond investors are demanding higher yields to hold US treasuries, with interest on US debt now rivalling defence spending. The weakening dollar has further pressured the US dollar and boosted prices for monetary metals.\nEquity Markets Driven by Mega-cap TechDespite stagflationary conditions—persistent inflation paired with sluggish growth—US equity indexes continued to rise in May, propelled largely by mega-cap tech stocks. The S&P 500’s 5% gain marked its best May since 2009, yet it was an uneven month for individual stock investors, with the equal-weighted S&P 500 underperforming its cap-weighted counterpart for the fifth consecutive month.\nElectricity Demand Spurs Infrastructure NeedsThe rising demand for electricity in the US, Europe, and China has highlighted the need for new power generation capacity and upgrades to existing infrastructure. This demand surge is driving increased interest and prices for industrial metals.\n\n\n\n\n\n\n\n\n\nMarket Indices\n\n\n\n\n\n\n\n\n\nOverall Commodity Performance\nMetals Market Movements\nGold and Silver SurgeGold prices have soared to nominal highs of over $2400 per ounce despite high real bond yields and a strong dollar. This increase is largely driven by central banks diversifying away from traditional assets amid geopolitical tensions. Silver also hit an 11-year high of $32.05 per ounce, driven by industrial demand and monetary buying, particularly for its use in solar energy.\n\n\n\n\n\n\n\n\n\nGold & Silver Price Trend\n\n\n\n\n\n\n\n\n\nSilver is still cheap vs gold\nBase Metals RallyBase metals saw price increases in May due to manufacturing sector improvements and supply shortages in the US and China. However, some rallies reverted towards month-end due to concerns over Chinese manufacturing. The LME 3-month copper contract reached an all-time high, driven by supply tightness and short position squeezes on COMEX.\n\nIndustrial Metals DynamicsStabilizing Chinese growth, stockpiling due to a new Cold War, US tariffs signalling industrial revival, and the electrification of technologies have spurred a rally in industrial metals. Conversely, lithium prices have declined as EV demand cools, while hybrid EV demand surges. Uranium prices remain bullish on strong demand and limited supply, despite a recent consolidation.\n\n\n\n\n\n\n\n\n\n Lithium carbonate 99.5% Li2CO3 CIF Asia (min, battery grade, spot price)\nNickel and Copper TrendsNickel and copper prices continued their upward trajectory in May, although the near-term outlook turned bearish due to potential US interest rate cuts and an unexpected contraction in China’s manufacturing sector. Indonesia’s delay in banning copper concentrate exports also alleviated some pressure on global supply.\n\n\n\n\n\n\n\n\n\nNi & Cu Price Trend\nUranium Market Highlights\n\n\nPrice Consolidation: Uranium prices stabilized following a recent rapid uptick, maintaining a bullish outlook due to strong demand and supply fundamentals.\n\nLegislation Impact: The US Senate passed the Prohibiting Russian Uranium Imports Act, banning low-enriched uranium imports from Russia, driving prices higher.\n\nETF Surge:\n\nGlobal X Uranium ETF (URA): Hit its highest level since April 2014, with over $3 billion under management.\n\nSprott Uranium Miners ETF (URNM): Attained its all-time high since its 2019 launch.\n\n\n\nGlobal Supply Dynamics: Continued decline in mobile uranium inventories contributes to a structural supply shortage projected over the next decade.\n\nSouth Korea's Energy Plan: Proposal to add 4.9GW of nuclear capacity to curb emissions and meet rising demand from data centres and semiconductor manufacturing.\n\n\n\n\n\n\n\n\n\n\nU3O8 spot price trend\n\n\n\n\n\n\n\n\n\nSprott Uranium ETF Performance Trend\nCommodity Indexes and Key Developments\nS&P Global Commodity IndexThe commodity market remained bullish in May, though the pace of growth slowed. The S&P Global Commodity Index reflected this trend with a modest 0.1% increase for the month but a substantial 8.1% year-to-date gain.\n\n\n\n\n\n\n\n\n\nS&P Global Commodity Index Trend\nChinese Manufacturing PMI DeclineA surprise decline in China’s manufacturing PMI into contraction territory raised concerns about weak demand impacting economic recovery. This decline was larger than typical for this time of year, further complicating the market dynamics for base metals.\n\n\n\n\n\n\n\n\n\nChinese PMI trend since Jan 2024\nNotable Market Performances\nIron OreIron ore prices declined in May due to a deteriorating demand outlook in China, exacerbated by PMI reports indicating contraction. Reduced steel production and high inventory levels further pressured prices, with a 3.2% loss marking the worst performance in two months.\n\n\n\n\n\n\n\n\n\nIODEX\n62% Fe fines Price Trend \nOil and Natural GasNatural gas prices saw a significant increase in May due to seasonal demand changes, reaching a six-month high of $2.84 per MMBtu. Oil markets remained stable, with prices aligning with long-term inflation-adjusted averages despite geopolitical tensions. Brent\nprices in May are around $83 per barrel, aligning with the long-term\ninflation-adjusted average.\n\n\n\n\n\n\n\n\n\nBrent Oil & NG Price Trend\nChart of the Month  -  Gold Holdings of Global Central Banks Significant rise in Gold purchases with East and Central Asian central banks the main buyers\n\n\nCentral banks are diversifying their foreign exchange reserves away from traditional assets like the US dollar and euro. Gold offers a way to reduce reliance on these currencies & spread risk.\nCentral banks have emphasized gold's importance in crisis response, its diversification benefits, and its value as a store of wealth. \nWith ongoing global uncertainty in 2024, these reasons for holding gold remain highly relevant. \nRising geopolitical tensions, especially involving Russia and China, have made these countries more cautious about holding assets that could be subject to sanctions or other political risks. Gold is seen as a safer, politically neutral asset.\nThe above is one of the recent drivers of gold’s price rise.\n\n\n\n\n\n\n\n\n\n\nGlobal Central Bank Gold Purchases, in tonnes, Q1-2010 – Q1-2024 (Incrementum AG 2024)\n\nConclusion: Navigating Volatile Markets\nInvestors are navigating a complex landscape of volatile commodity prices, driven by geopolitical tensions, demand fluctuations, and economic indicators. While gold and silver have shown strong performances, industrial metals present a mixed picture, reflecting the broader uncertainties in global markets. As fiscal and monetary policies evolve, market participants will need to stay agile and informed to capitalise on emerging opportunities.\n\n\n\n\n4o\n\n\n\n\nNever miss an update\n\n    Enjoy this wire? 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