The choice oh sources is endless, but we will use Bloomberg for the headline of the day ‘stocks surge to All-time high on vaccine optimism’ with a sub-headline ‘ Pfizer’s Covid Shot prevents 90% of infections in large study’.
Equities are making new highs, oil is up 7.2% to USD 42.46, having traded as high as 39.46 and iron ore is up 3.72% to USD 118.50. Base metals are bid across the board and testing or making new highs alongside ferrous and energy. Last week it was the Biden bid, but this COVID bid is a strong move on the back of a Potential change in the global economy rather than a positive sentiment move on the changing of the guard in the U.S.
Freight was already showing positive price action last week and although it was initially a quiet start to the week the futures did see price increases this afternoon across the board. Capesize Dec USD 15,425 + 2.8%, Q1 USD 8650 +1.8% and Cal 19 USD 13,300 + 0.9%. Panamax followed suit with the Dec at USD 9,700 +3.2%, Q1 USD 8,350 + 1.8% and Cal 21 USD 9,725 + 0.3%. The Supramax were more subdued with the Dec at USD 9,375 +0.5%, Q1 USD 9,862.5 +0.8% and Cal 21 at USD 9,050 + 0.8%
More information is still needed to see if we will continue to see a commodities rally, there is still an issue with a COVID mutation linked to Mink in Demark, Spain and numerous other countries that is in the process of being contained. However, this is more than just a hopeful headline suggesting there could be light at the end of this very long tunnel.