#commodities

#commodities

Cramer has not implied that the tech rally is ending, but he does believe that the AI trade is "breaking up" as investors think more critically. Put another way, if you are doubting some AI stocks and you're paying too much for them right now, it's probably a good idea to take some profits and move them elsewhere. Having more exposure to recession-resistant stocks makes even more sense as AI-related tech stocks have ballooned to epic proportions.

At Kpler, we are dedicated to helping our clients navigate complex markets with ease. By simplifying global trade information and providing valuable insights, we empower organisations to make informed decisions in commodities, energy, and maritime sectors. Since our founding in 2014, we have focused on delivering top-tier intelligence through user-friendly platforms. Our team of over 700 experts from 35+ countries works tirelessly to transform intricate data into actionable strategies, ensuring our clients stay ahead in a dynamic market landscape.

That comes despite widespread optimism over US-China trade negotiations, which signal the potential for a breakthrough ahead of Trump's meeting with Xi later in the week. In Europe, this morning has seen a German Ifo business climate survey that brought an improved headline figure of 88.4, while the expectations metric rose to the highest level since Feb 2022. However, despite optimism over future business conditions, the worsening of current conditions (85.3) highlights a perception of a struggling economy that many hope will get better.

Not unlike the inverse yield curve for bonds, which is when short term rates exceed long term ones, backwardation is when spot prices for commodities pull ahead of the futures market. Normally, the precious metals market charts similarly to that of interest rates, with near term prices cheaper than longer term ones, which carry elevated risks of unforeseen change, as well as increased carrying costs.

With government data releases halted by the shutdown, markets turned to private indicators for clues about the economy's health. Payroll provider ADP reported a surprising 32,000 job losses in September-far below expectations for job gains-fuelling expectations for Fed rate cuts. However, several Fed officials maintained a cautious tone. Chicago Fed President Austan Goolsbee warned of persistent services inflation, while Dallas Fed's Lorie Logan suggested a slower path to policy normalization.