We begin with the global commodity markets.
1. Metals & mining shares have bounced sharply, outperforming the S&P500 by 43% in 2016.
A key driver of this outperformance by the mining firms is the recent rally in iron ore, with the futures in Singapore rising by over 5% on Monday. Vale, a major mining company, seems to be quite bullish iron ore.
Source: The Australian
2. Steel futures in Shanghai were up 3.5% on Monday, with price increases accelerating.
As discussed before, part of this rally is driven by a more forceful fiscal stimulus package from Beijing as investment projects in China pick up pace.
Source: @Callum_Thomas, LSR
Rising prices of steel and several other products have now made their way into China’s PPI, which rose (month-over-month) for the first time in years. The end of the wholesale deflation in China was also visible in increasing output prices in the PMI reports.
3. Another commodity that has been on the rise in China is pork.
Higher pork prices have kept the food CPI as well as the headline CPI in China (relatively) elevated.
4. The next chart shows gold mining shares vs. gold over the past year.