The bulls have returned to the driver’s seat at home as evidenced by the S&P 500′s steep rebound following the short-lived pullback that was sparked on the last trading day of July. Easing tensions between Russia and Ukraine and a (temporary) ceasefire in Gaza welcomed back buyers on Wall Street after the S&P 500 managed to sink about 4% in just two weeks [for more commodity futures news and analysis subscribe to our free newsletter].
The last few months have primarily focused on the tensions between Russia and Ukraine, and the violent conflict has escalated in recent weeks. Now, the U.S. and European Union are imposing various sanctions on Russia in an effort to get President Vladimir Putin to play ball. These actions have yet to affect the European nation. Instead, Putin has retaliated with sanctions of his own, creating something of a legislative battle, potentially creating major headwinds for certain commodities [for more commodity news and analysis subscribe to our free newsletter].
The bears have finally arrived on Wall Street. Much to the bulls’ frustration, selling pressures have managed to return with full force amid all-time highs for major equity indexes. Growing fears of an earlier-than-expected rate hike on the home front has prompted a market-wide sell off that doesn’t appear to be over just quite yet [for more commodity futures news and analysis subscribe to our free newsletter].
U.S. hurricane season kicked off over the weekend, as the time period between June 1st and November 30th of each year brings special attention to these storms. Aside from the devastation they can bring to the areas they hit, these storms can also have a big impact on the commodity world (albeit short-term). Few commodities feel the brunt of the blow more than fossil fuels [for more commodity news and analysis subscribe to our free newsletter].
Major equity indexes climbed higher last week week and kicked this week off on strong footing thanks to upbeat new home sales data and a lack of “bad surprises” from the latest FOMC minutes release. Overseas, tensions between Ukraine and Russia are heating up again following presidential elections as well as a firefight over Donetsk airport [for more commodity futures news and analysis subscribe to our free newsletter].
Dividend investing has continued to be a major theme in 2014, as investors look for steady income for their portfolios. Though commodity producers are not always known for their yields, there are several companies that are dishing out juicy dividends, with some yielding more than 20% [for more commodity news and analysis subscribe to our free newsletter].
Backwardation is the process by which futures contracts decrease in price as they move further out in maturity. This can often be due to the expectation of future prices or trends in a certain hard asset, but it can also occur from supply boosts, among other things. Though it is not a phenomenon that should worry investors, keeping an eye on the futures curve can help you make more informed investment decisions [for more commodity news and analysis subscribe to our free newsletter].