Producers of metals and other raw materials rose after a record surge in pending-home sales spurred bets on a "v-shaped" recovery.
The bulls and bears on Wall Street have clashed over whether the economic recovery from the coronavirus lockdown would be fast or slow, with cyclical sectors such as raw materials serving as their battleground.
Last week, the spike in Covid-19 cases in the three most populous American states gave the bears the edge. But Monday's pending-home sales data restored the upper hand to the bulls.
Now, after three months of an improbably sharp and fast-paced rally, bearish hedge funds are scrambling to cover bets against the U.S. stock market, The Wall Street Journal reported.
Still, concerns about the spike in Covid cases kept a bid in the gold market, and precious metals futures remained near recent multiyear highs.
Chinese restrictions on coal imports, imposed due to the Covid pandemic, could weigh on prices in the second half of the year, according to one brokerage.
"Mongolian imports were very low earlier this year after it closed the border for six weeks during China's COVID-19 epidemic, and it was slow to restart," said analysts at brokerage Credit Suisse, in a note to clients.
"That shortfall was offset by very high seaborne imports largely from Australia, which was cheaper than domestic supplies, but seaborne supply is now facing restrictions."
Write to Rob Curran at firstname.lastname@example.org
(END) Dow Jones Newswires
June 29, 2020 16:38 ET (20:38 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.