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Commodity rout shows signs of easing as oil rises

Cape Town - Gold climbed a second day and oil headed for the first weekly advance in a month as a rout in commodity markets showed signs of easing. Bonds extended gains.

The Bloomberg Commodity Index rose for a third day, recovering from a 16-month low on May 9.

European stocks struggled for direction following the biggest drop in three weeks on Thursday as investors assessed global earnings and the appetite of US consumers to keep spending. The Bloomberg Dollar Spot Index headed for its best week of the month as bets stack up on a Federal Reserve interest-rate increase next month.

Investors are turning to gold as equity markets in Asia drop and US stocks seem to have topped out near a record high. Shrinking US crude inventories are bolstering oil prices as two OPEC members said there’s consensus to extend supply cuts past June. Reports on Friday, forecast to show inflation and retail sales both increased last month, may back the case for the Fed keep raising interest rates.

Here are key events investors will be watching:

Chicago Fed President Charles Evans is due to speak in Dublin at a conference that will also host European Central Bank policy maker Philip Lane.

In addition to retail sales data, the US is scheduled to report on consumer prices on Friday. Chinese President Xi Jinping hosts world leaders including Russian President Vladimir Putin at a summit promoting his $500bn trade-and-infrastructure plan, which is called the Belt and Road Initiative. The summit begins on Sunday and will showcase Xi’s plans to remake global trade patterns in China’s favour.

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