The Daily Shot

By SoberLook

We begin with the global commodity markets.

1. Metals & mining shares have bounced sharply, outperforming the S&P500 by 43% in 2016.

Source: Ycharts.com

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: barchart

Source: The Australian

2. Steel futures in Shanghai were up 3.5% on Monday, with price increases accelerating.

Source: barchart

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.

Source:  ‏@TomOrlik

Source:  ‏@TomOrlik

3. Another commodity that has been on the rise in China is pork.

 

Source: ‏@pdacosta 

Higher pork prices have kept the food CPI as well as the headline CPI in China (relatively) elevated.

Source: @Sentifi_HK

4. The next chart shows gold mining shares vs. gold over the past year.

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