Monthly Metal Review
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
Visible trends of an improvement in the US labor market have given confidence in the global recovery and pushed up equities, emerging market assets and higher-yielding currencies at the expense of core government bonds and the yen. While the US dollar remained weak through out the month of April.
Emerging market stocks climbed to their highest levels since June 2008, while the additional yield demanded to own emerging-market debt over US Treasuries declined to 255bp, according to JPMorgan’s EMBI+ index.
On the currency markets, the ECB expectations helped support the euro even as Portuguese government bond yields soared to records following a further sover-eign credit rating downgrade.
Gold and Silver prices finished strongly towards the end of April at respectively $1530 per ounce and $45 per ounce. Various Bid battles have been seen this month such as the Barick Gold and Equinox, following Minmet-als, Lundin, and Inmet. Some developments also testified to the fact that mining and processing industry has been getting more and more influenced by national interests of the countries and environmental concerns of local popu-lation.
The CEO of the Brazilian giant Vale has been replaced from his post by the instigation of the government. Poli-cy that has been led recently does not meet national re-quirement to invest more into local market and withhold from overseas acquisitions.
Recent project of merging two bourses SGX and ASX that could lead to the creation of the largest stock ex-change in the Asian region with capitalization of the involved companies reaching US $500 billion that over-takes its biggest present rival HGX valuing US $400 billion has been doomed. The government of Australia considers it menacing national interests of the country.
In Peru the strike of the farmers delays the implemen-tation of the project for Southern Copper Corp’s Tia Maria deposit exploration.
Nevertheless, the spike in prices for the commodities, as the E&Y report noted, has given impetus that "the number of players has mushroomed quite significantly and many are now jostling to get projects through feasibility and into production. Those that get into production first are more likely to capture the current price premiums, with the market likely to be very sensitive to future increases in supply.