The FTSE 100 was set to get off to a quiet start to today’s four-day week, even as talks of a “supercycle” in commodity markets grew louder.
A growing number of analysts have cited perfect storm factors, including an impending surge in the Chinese economy, governments spending trillions of dollars on Covid recovery projects, and heavy investment in green technology that requires large amounts of metals to run. His construction.
Iron ore and palladium have reached record levels, as have wood and even agricultural products such as wheat, sugar and dairy.
The price boom has been reflected well in mining and other commodity-dependent stocks, from Glencore to Rio Tinto in recent months, but if analysts are right and high prices will be at stake for a period of time sustained, they could have go.
The FTSE 100 is particularly biased towards the mining and commodities giants, and should also benefit if the supercycle thesis is correct.
Despite such talk, the FTSE was being called down from 5.9 to 6985.1 by traders on the IG platform today.
Investors will try to figure out how to trade travel stocks after Boris Johnson suggested yesterday that “some” international travel would be allowed to resume from May 17.
The comments, coupled with the European Commission’s plans to allow those who have been fully vaccinated to travel, could boost share prices in the sector, but Johnson was careful to caution his words by stressing how the government would be ‘cautious’ with reopening.