Sabina CEO: We’re Seeing “The Beginnings Of A Bull Market In Commodities”
Mar 01, 2019
Fundamentals in terms of pricing saw gold, in every currency, outperform equities benchmarks in 2018, pointing to the beginning of a new bull cycle, said Bruce McLeod, CEO of Sabina Gold & Silver.
“We’ve seen gold and gold equities even outperforming the S&P in 2018. So, we’re seeing the beginnings of what generally are the start of a bull market these commodities,” McLeod told Kitco News on the sidelines of the Gold Stock Analyst Investor day.
Stocks Higher
Stock futures looked to a higher open on the heels of reports of an impending trade deal between the U.S. and China.
Futures for the S&P 500 (ES=F) rose 0.35%, or 9.75 points, as of 8:23 a.m. ET. Dow futures (YM=F) rose 0.36%, or 94 points, while Nasdaq futures (NQ=F) advanced 0.56%, or 40.25 points.
The U.S. and China are reportedly nearing a trade deal that would involve Beijing lowering tariffs on American farm, chemical, auto and other products and bumping up purchases of American goods. As part of the deal, the U.S. would lift many or all tariffs on Chinese products. Such an agreement could come as soon as the end of March, according to reports citing unnamed individuals familiar with the matter.
“The carrot of a trade deal is being dangled in front of investors once again,” Chris Beauchamp, chief market analyst at IG Group, wrote in an email. “Hope that Trump and Xi will sit down later in the month to hammer out a resolution have buoyed equities, but given the outcome of last week’s U.S.-NK chit-chat perhaps a more sanguine approach would make sense.”
Last week, President Donald Trump walked out during his second summit with North Korean leader Kim Jong Un after the two failed to come to an agreement that would satisfy Washington’s demands for North Korea to give up most of its nuclear weapons program.
China also intends to cut the value-added tax rate covering its manufacturing sector by 3 percentage points, according to a Bloomberg report citing a person familiar with the matter. The VAT reduction, which may be announced as soon as this week, could provide a boost to the decelerating Chinese economy of 600 billion yuan ($90 billion), or 0.6% of GDP, according to Morgan Stanley estimates.
Posted By :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com