Energy: Growth in oil demand is accelerating as restrictions ease ahead of the seasonal rise in travel. This comes amid an ongoing rebound in economic activity as monetary and fiscal stimulus measures kick in. Downside risks are rising in Asia (ex-China) as virus infections rise.
Precious: Lower bond yields, weaker dollar and inflationary pressures are providing the perfect backdrop for gold. Dovish comments from the Fed are limiting any upside risk for the US dollar. That said, gold remains vulnerable to any news around tapering of asset purchases, as the global economy is in midst of strong recovery.
Industrials: The broadening of the economic recovery driven by large stimulus measure should support demand for base metals. This may be partly offset by slight tightening in liquidity and slowing infrastructure investment in China.
Bulks: Rising regulatory controls in China have taken the heat out of record high iron ore & steel prices.