Global container rates surge to 2022 highs, China manufacturing & output strengthens for 7th month amid chip demand. Investor implications. 7 points

1- China's manufacturing and output grows stronger than expected, with the readings the highest since June 2022. The Caixin PMI Index rose to 51.7, vs Est. 51.6. Manufacturing output hit 54.3 vs 53.1 in April.

2- 40-ft container rates are the highest since 2022. But they'll rise again. Container rate prices are up over 178% this year to $4,226, their highest since 2022, reflecting rising goods demand.

3 - Container rates will probably rise again as OPEC+ agreed to extend oil production cuts till 2024 end to support oil prices. Erm okay. But we're coming up to peak oil demand season with Northern Hemisphere summer with diesel demand (for planes) and freight demand to rise. So say hello to rising oil prices with demand to push up, and supply to reduce. And expect business to pass on higher freight costs to the consumer too.

4 - This shows inflation will pick up again, and validates where momentum is in financial markets; commodities, chips, energy prices, uranium. Investors need to pay attention to this.

5- In three months, Copper & Aluminum prices +19% Nickel +10%, Silver +26% Wheat + 22%