For now at least the Mining GFC is dead as the Yellen reflation takes centre stage. The US dollar eased again:
Commodity currencies are all on the verge of breaking to new highs:
Yen and euro were stable:
Brent oil roared to new highs:
Gold was stable:
Interestingly, base metals were hammered:
And big miners fell:
US and EM high yield broke out big with oil:
And the S&P500 hit new 2016 highs on its march towards all time highs:
Janet Yellen take a bubbly bow. The Mining GFC is dead. Oil is back. Emerging markets and credit are rallying. Yet anything China exposed is not. Indeed this turn of events is not like the commodity bear market rally earlier this year as the threat of more Fed tightening is hanging over the broader complex.
For miners this is now an unhappy rally as their input costs rise more than their demand outlook does, but so long as oil is kept out of it then wider markets can scale on towards new highs.
Of course at some point Ms Yellen will have to face up to an even bigger bubble and, given a creeping Chinese slowing will transpire throughout H2, she’ll find herself at year end with an even more difficult decision to resume tightening.
But for now, party! From CNNMoney:
