The Euro to Pound exchange rate continues to move sideways ahead of monetary policy decisions by the Bank of England (BoE) and the European Central Bank (ECB) on Thursday.
Due to the expansion of EVs and concerns about the lack of commodities for the production of batteries, the world's billionaires have started to invest in shares of metal producers. However, the value of cobalt is in the red numbers. While in March 2018 cobalt was at its historically highest level of $95,250 per metric ton, it dropped from the peak by approximately 66 percent to $32,638 per metric ton a month agso.
The significant drop in the price of the metal was mainly due to the cobalt oversupply. However, prospects for the future price developments remain positive due to the demand for batteries. Recent developments in cobalt market include the recent introduction of a new cobalt contract on the London Metal Exchange.
Billionaires Bill Gates, Michael Bloomberg, and Jeff Bezos have invested, through the Breakthrough Energy Ventures (BEV), in the start-up Kobold Metals, which is working on developing "Google maps" focused on the Earth's crust to discover additional sources of cobalt. In most cases, the commodity is only a by-product of nickel and copper mining. Given the increasing number of electric vehicles, this method of obtaining an element may be insufficient in the future.
Cobalt reached a record low of $21,750 per metric ton in February 2016.
Global markets ended last week on a positive note. Moving ahead, markets are expected to be volatile this week, with investors closely watching economic data and global events. The inventors are anxiously awaiting Wednesday’s decision by the Federal Reserve on interest rates along with ECB and BOE decisions on Thursday.
Shares of the home furnishings and décor e-tailer Wayfair (NYSE: W) retreats almost 10% after the stock spiked more than 50% from the last Thursday’s closing. However, Investors continued to show buying interest in Wayfair shares in the coming days.
This week the economic calendar will bring investors the fourth quarter US GDP report, PCE price index and durable goods orders data. The main event on the calendar for monetary policy this week is the meeting of the Bank of Canada on Wednesday.