+91731-6690000
Showing posts with label Intraday commodity tips. Show all posts
Showing posts with label Intraday commodity tips. Show all posts

Wednesday, 14 November 2018



BULLION:-

Gold prices held steady on Thursday after gaining nearly 1 percent on Wednesday, helped by a slight retreat in the dollar following a rally and as some investors covered their short positions after the metal held the key $1,200 level. Spot gold was up 1 percent at $1,210.60 per ounce. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session. U.S. gold futures settled up $8.70, or 0.72 percent, at $1,210.10. An index that tracks the dollar versus a basket of six major currencies was down 0.2 percent after hitting a 16-month high on Monday. Factors including increased buying by central banks, the return of interest amongst exchange-traded fund (ETF) investors and seasonal demand for physical gold are acting as a cushion to the downside. Holdings of the world's largest gold-backed ETF, SPDR Gold Trust (GLD), remained near their highest level in more than two months. Bullion has fallen about 11 percent from a peak in April as investors instead flocked to the dollar, with U.S.- China trade friction unfolding against a background of higher U.S. interest rates.  

METALS:-

London copper and aluminium prices rose slightly along with other metals on Thursday, with investors looking to potential stimulus spending in China after weak retail and credit growth data in October. Three-month copper on the London Metal Exchange had risen 0.4 percent to $6,113 a tonne at the time of writing, while the most-traded copper contract on the Shanghai Futures Exchange gained 0.4 percent to 49,180 yuan ($7,076) a tonne. Prices of aluminium, zinc, lead and tin also increased. The outlook for copper demand in the mid to long term remains healthy despite current trade friction between China and the United States as a renewable energy revolution will require vast amounts of the metal, industry executives said. Global miner Rio Tinto is among parties making a final offer for a minority stake in Teck Resources Ltd's Quebrada Blanca copper mine expansion in northern Chile, a development worth $4.8 billion, two sources close to the matter said. China, the leading holder of international deep sea exploration licences, has increased its lead in the race for alternative sources of battery minerals by taking samples from cobalt-bearing mountains deep in the Pacific.  

ENERGY:-

Natural gas prices shot through the roof on Wednesday as weather forecasts called for an increasingly cold winter in what is looking like a tightly supplied market. Natural gas spot prices had climbed by more than 17 percent to reach $4.812-a price that traders haven't seen since Fall 2014. The natural gas futures market had an exceptionally volatile trading morning, with prices surging about 35 percent since the beginning of the month, likely stemming from traders rushing to cover short positions as panic set in. The 10- to 15-day weather forecast that has the market in a jumble calls for exceptionally cold weather over the next six to fifteen days-the trend showing ever increasing cold temperatures. The cold snap is just one factor pushing prices upward. Inventories for natural gas are also low for this time of year, data from the EIA showed last week. Total natural gas stocks as of 11/02 were 3,208 Bcf-a 15.3% decline from this week a year ago, and 16.2% below the five-year average. Updated storage data is scheduled to be released today at 09.00 PM IST.  



CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Monday, 29 October 2018


BULLION:-

Gold prices inched down on Tuesday as the U.S. dollar gained on worries over slowing economic growth and fears the Sino-U.S. trade war could intensify again. Spot gold was down 0.2 percent at $1,227.41 an ounce, after falling 0.3 percent on Monday. U.S. gold futures were up 0.2 percent at $1,229.30 an ounce. The dollar firmed against its rivals on Tuesday, gaining 0.1 percent. The United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war, Bloomberg reported on Monday, citing unnamed sources. Asian shares were under pressure in early Tuesday trade after Wall Street peers finished weak, hurt by the fresh worries of an escalation in the trade war, on track for the worst October since the financial crisis in 2008. On data front, U.S. consumer spending climbed for a seventh straight month in September, but income recorded its smallest gain in more than a year on moderate wage growth, suggesting the current pace of spending was unlikely to be sustained.  

METALS:-

Shanghai base metal prices fell in early trade on Tuesday on a stronger dollar and a report that the United States is planning tariffs on an additional $257 billion of Chinese goods. Prices have been weighed down by tit-for-tat tariffs imposed by the world's top two economies this year amid concerns the trade row will hurt demand for industrial metals. Three-month copper on the London Metal Exchange slipped 0.4 percent to $6,134 a tonne, having ended the previous session flat with support from tumbling inventories. The most-traded December copper contract on the Shanghai Futures Exchange fell by 0.3 percent to 49,740 yuan ($7,146) a tonne. Zinc fell as much as 2.2 percent in Shanghai to 21,715 yuan a tonne, the weakest since Oct. 22, as China's ferrous complex also moved lower. The dollar index nudged up 0.1 percent to 96.659. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.  

ENERGY:-


Brent oil prices fell on Tuesday, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran’s crude exports. Front-month Brent crude oil futures were at $77 a barrel, down 34 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $67.08 a barrel, little changed from their last settlement. Oil has been caught up by broad financial market slumps this month, with stocks falling again on Monday after reports the U.S. is planning an additional $257 billion worth of tariffs on Chinese goods if upcoming talks between Presidents Donald Trump and Xi Jinping fail to end a trade war between the world’s two largest economies. Oil was also being weighed down by signs of rising supply from top producers. Russia has also indicated that it will provide enough oil to meet demand once U.S. sanctions hit Iran from next week. In a sign that oil supply remains ample despite the looming U.S. sanctions against Iran’s petroleum exports, crude output from the world’s top 3 producers, Russia, the United States and Saudi Arabia, reached 33 million barrels per day (bpd) for the first time in September, Refinitiv Eikon data showed. 


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647


Thursday, 25 October 2018


BULLION:-

Gold prices tiptoed lower while crude oil prices rose tepidly with stocks amid a brief interlude in the broad-based risk appetite collapse defining financial markets this week (as expected). These moves’ corrective character was made plain soon enough however as sentiment soured anew in Asia Pacific trade. Third-quarter US GDP data may amplify the risk-off push. Growth is seen slowing to an annualized rate of 3.3 percent, down from the four-year high of 4.2 percent previously. That is both a large-enough comedown to rattle already jittery investors and a strong-enough print to keep Fed rate hikes on track.

METALS:-

On Thursday, LME copper rebounded to $6,200/mt from a two-week low of $6,113.5/mt after data showed that LME inventory decreased to a 12-year low. A robust dollar then forced it to give up some gains before the contract refreshed day-highs of $6,227.5/mt on short-covering. As shorts took profits, the SHFE 1812 contract crept to session-highs of 50,390 yuan/mt before it edged down by closing. In the physical market, spot discounts are likely to widen after long-term contracts were completed and as copper prices rose. Downstream consumers stood on sidelines. LME copper is likely to trade at $6,150-6,220/mt today with the SHFE 1812 contract at 49,900-50,400 yuan/mt. Spot discounts are seen at 80-30 yuan/mt.


ENERGY:-


Oil prices fell on Friday and were heading for a third weekly loss, pulled down as Saudi Arabia's OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand. Saudi Arabia's OPEC governor said on Thursday that the oil market could face oversupply in the current quarter. Saudi Arabia Energy Minister Khalid Al-Falih said there could be a need for intervention to reduce oil stockpiles after increases in recent months. Crude oil stockpiles rose last week for the fifth consecutive week, while gasoline and distillate inventories fell, the Energy Information Administration said this week. in stock markets have roiled oil prices this week as Wall Street had its biggest daily decline since 2011 near $10 per barrel drop in Brent crude seen over October is a spillover from the global sell-off in equities and broader risk-off sentiment in the market," said Fitch Solutions.


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Wednesday, 24 October 2018


BULLION:-

Gold fell on Wednesday, as a rising dollar spurred investors to take profits after tumbling stocks pushed the metal to a more than three-month peak in the previous session. The dollar, as measured against a basket of other currencies .DXY , hit its highest since Aug. 17, potentially weighing on demand by making bullion more expensive for holders of non-dollar currencies. U.S equities were in the red, pressured by disappointing earnings, concerns over Italy's budget and worries that world economic growth is losing steam. Gold was expected to stay supported as investors were likely to use bullion as insurance against growing political and economic tensions in the world, some analysts said.

METALS:-

Downbeat economic data across Europe and upbeat data for the US shored up the US dollar index overnight and weighed on LME copper. LME copper fell past $6,200/mt to a low of $6,171/mt overnight. The SHFE 1812 contract ended in the red overnight even as it rebounded from a low of 49,980 yuan/mt. In addition to the robust US dollar, weakness across equity markets which dented investor risk appetite also pressured copper prices. LME inventories have gained for two consecutive days while downstream consumption has yet to pick up. Long-term contracts would be delivered today, which is likely to activate the physical market today. LME copper is expected to trade at $6,120-6,180/mt today with the SHFE 1812 contract at 49,900-50,180 yuan/mt. Spot discounts are seen up to 50 yuan/mt.

ENERGY:-


  Oil prices fell by around one percent on Thursday, coming under pressure from sharp selloffs in global stock markets, with U.S. stocks posting the biggest daily decline since 2011 to wipe out the year's gains. Oil prices fell under extreme selling pressure ... as the steep selloff across stock markets fuelled fears over a possible drop in oil demand growth," said Lukman Otunuga, analyst at futures brokerage FXTM. Markets have been hit hard this month by a range of worries, including the Sino-U.S. trade war, a rout in emerging market currencies, rising borrowing costs and bond yields, as well as economic concerns in Italy. oil, WTI has fallen nearly 10 percent so far this month, while Brent is down nearly 9 percent.


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Monday, 22 October 2018



BULLION:-

Gold prices inched up early Tuesday as Asian stocks faltered, weighed down by political tensions between Saudi Arabia and Western powers, uncertainties around Brexit and Italy's budgetary woes. U.S. President Donald Trump said he was still not satisfied with what he has heard from Saudi Arabia about the killing of journalist Jamal Khashoggi in Turkey, but did not want to lose investment from Riyadh. Russia said it would be forced to respond in kind to restore the military balance with the United States if Trump carried through on a threat to quit a nuclear arms treaty and began developing new missiles. The United States sent two warships through the Taiwan Strait on Monday in the second such operation this year, as the U.S. military increases the frequency of transits through the strategic waterway despite opposition from China. Trump, speaking to reporters at the White House as he left on a campaign trip to Texas, said on Monday his administration planned to produce a resolution within two weeks calling for a 10 percent tax cut for middle-income people.

METALS:-

As the US dollar index rebounded past 96, LME copper dropped to a low of $6,221.5/mt on Monday after it rose to a high of $6,331.5/mt. Despite a higher open, the SHFE 1812 contract fell overnight as shorts were keen to build their positions. China's central bank said on Monday that it will boost relending and rediscount quotas by 150 billion yuan to aid financing needs of small enterprises, as part of the government's measures to strengthen private sector support. This is set to support the market into the longer term. In the physical market, sellers are keen to hold their offers firm as traders needs to fulfill long-term contracts this week. Consumption of copper cathode weakened as wider price spreads between copper cathode and scrap deplete demand for refined materials. LME copper is likely to trade at $6,170-6,240/mt today with the SHFE 1812 contract at 50,100-50,800 yuan/mt. Spot prices are seen between discounts of 20 yuan/mt to premiums of 50 yuan/mt.

ENERGY:-


  Oil prices fell on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to U.S. sanctions against Iran's crude exports that start next month. U.S. sanctions against Iran's oil exports are due to kick off on Nov. 4, with Washington pressuring governments and companies worldwide to fall in line and cut imports from the Middle Eastern nation. Top crude oil exporter Saudi Arabia has pledged to keep markets supplied despite its increasing isolation over the killing of Saudi journalist Jamal Khashoggi has been concern that just as markets tighten on the back of the U.S. sanctions against Iran, Saudi Arabia could cut crude supply in retaliation for potential sanctions against it over the Khashoggi killing.

CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

BULLION:-

Gold prices edged higher early Monday, moving closer to a 2-1/2-month peak hit last week, as Asian shares fell amid rising political tensions and worries over slowing global economic growth. Spot gold was up 0.1 percent at $1,227.56 an ounce at the time of writing. On Oct. 15, the bullion touched its highest since July 26 at $1,233.26. Asian share markets fell anew on Monday as investors braced for the peak of the U.S. earnings season while angst over Saudi Arabia, Italy and Brexit kept geopolitics front at the center. Saudi Arabia on Sunday called the killing of journalist Jamal Khashoggi at its Istanbul consulate a "huge and grave mistake," but sought to shield its powerful crown prince from the widening crisis, saying Mohammed bin Salman had not been aware. President Donald Trump said Washington would withdraw from a landmark Cold War-era treaty that eliminated nuclear missiles from Europe because Russia was violating the pact, triggering a warning of retaliatory measures from Moscow.  

METALS:-

London copper prices rose for the second session in early Asian trade on Monday, extending a rally fuelled by a pledge from China's central bank that it would support firms with liquidity problems. Three-month copper on the London Metal Exchange edged up 0.3 percent to $6,236.50 a tonne at the time of writing, extending a 1 percent jump from the previous session. The most-traded December copper contract on the Shanghai Futures Exchange climbed by 0.8 percent to 50,390 yuan ($7,270) a tonne. Nickel was the biggest gainer, tracking gains in China's ferrous complex to rise 1.7 percent in London and 1.9 percent in Shanghai. Zinc slipped by as much as 1.8 percent in Shanghai after the ShFE on Friday reported a 23.3 percent jump in zinc inventories. The bulk of nickel moving out of London Metal Exchange-approved warehouses in Asia is showing up in hidden facilities in Europe, denting a bullish scenario of potential shortages. A Shenzhen-based commodity exchange controlled by Hong Kong Exchanges and Clearing unexpectedly began spot trading on Friday, giving the HKEX much-coveted access to mainland China's market.

ENERGY:


Oil prices edged up on Monday, as markets were expected to tighten once U.S. sanctions against Iran's crude exports are implemented next month. Front-month Brent crude oil futures were trading at $79.88 a barrel at the time of writing, 10 cents above their last close. U.S. West Texas Intermediate crude futures were at $69.31 a barrel, 19 cents above their last settlement. Also in the United States, Intercontinental Exchange (ICE.N) said its new Permian West Texas Intermediate crude futures contract deliverable in Houston, Texas, will begin trading on Monday. The main price driver in Asia on Monday was the looming start of U.S. sanctions against Iran's oil exports, which will start on November 4. While the Organization of the Petroleum Exporting Countries (OPEC) agreed in June to boost supply to make up for expected Iran disruptions, an internal document reviewed by Reuters suggested that OPEC is struggling to add barrels to the market as an increase in Saudi Arabian supply was offset by declines in Iran, Venezuela, and Angola. 

CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Monday, 15 October 2018


BULLION:-
There Gold prices inched higher early on Tuesday, hovering near a 2-1/2 month high hit in the previous session, as risk averse investors sought a safe haven amid rising political tensions and economic uncertainty. Spot gold was up 0.1 per cent at $1,227.76 an ounce at 0114 GMT. On Monday, it touched a peak of $1,233.26, the highest since July 26. Asian stocks bounced modestly on Tuesday, gaining a toe-hold after a week of heavy losses, although increasing tensions between Saudi Arabia and the West fanned geopolitical concerns and capped gains. The US government closed the 2018 fiscal year $779 billion in the red, its highest deficit in six years, as Republican-led tax cuts pinched revenues and expenses rose on a growing national debt, according to data released on Monday by the Treasury Department. 

METALS:-
London copper closed near its day lows at $6,253/mt on Monday as longs booked profits after the contract climbed to an intraday high of $6,342/mt. With bearish sentiment from weakness in the equity markets, longs booked profits after the SHFE 1811 contract crept to a high of 50,960 yuan/mt and hovered around the daily moving average. This dragged the contract down to close at a low of 50,480 yuan/mt overnight. The pessimistic sentiment, triggered by the equity rout, lingered and this slowed the growth in copper prices. However, China's robust exports in September and low stocks across LME, COMEX and SHFE warehouses could provide some support. On technicals, LME copper touched the 10-day moving average and its Bollinger bands appeared to converge; SHFE copper stood firmly above the five-day moving average. We expect LME copper to trade at $6,190-6,280/mt today with the SHFE 1811 contract at 50,500-51,000 yuan/mt. Spot prices are seen at discounts of 20 yuan/mt to premiums of 30 yuan/mt.

ENERGY:-

Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of U.S. sanctions against Tehran that are set to start in November. Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Definitive Eikon data. That was down from 1.6 million bpd in September, the data showed. October exports are a sharp drop from the 2.5 million bpd exported in April before U.S. President Donald Trump withdrew from a multi-lateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC).


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Sunday, 14 October 2018


BULLION:-

There were a recent combination short covering and a flight to safety that lead to gold's rapid increase in price with the precious metal climbing through the descending channel's resistance to set a fresh high of $1,226/oz up from $1,180 recent double bottom lows. However, US equity markets set a firmer tone on Friday with respect to investor risk appetite which leaves gold bulls exposed to the risk of a deeper correction should market's continue to recover - Gold had already retreated back to $1,216 which has been marked out by the bears in the last two full day's of trade since its advance.  Eyes will stay focussed on US rates, the US dollar and stock markets with investor sentiment on shaky grounds considering the heightened tensions with respect to global trade relations and geopolitical risks

METALS:-

London copper reversed some early gains on Friday as the dollar climbed. The SHFE 1812 contract on Friday night fell below the daily moving average and ended at 50,720 yuan/mt after it rose to a high of 51,090 yuan/mt. Copper prices recovered as the markets settled from the US equity rout. In late trading on Friday, LME nickel lost all the gains it made earlier in the day and fell to a low of $12,610/mt before hovering around $12,670/mt and settling at $12,685/mt. The SHFE 1811 contract on Friday night rebounded to hover around 105,000 yuan/mt and end at 104,950 yuan/mt after it fell to a low of 104,430 yuan/mt. SHFE nickel prices are likely to remain rangebound as supply and demand both grow. LME nickel is expected to hover around $12,650/mt today and the SHFE 1811 contract is expected to trade at 104,000-106,000 yuan/mt. Spot prices are seen at 104,000-111,000 yuan/mt

ENERGY:-


Crude oil futures rose on Monday as geopolitical tensions over the disappearance of a prominent Saudi journalist stoked worries about supply, although concerns about the long-term outlook for demand dragged on prices. "The market has again expressed concerns over geopolitical tensions in the Middle East after U.S. and Saudi traded comments over the disappearance of the Saudi journalist, leading to a jump in prices," Wang Xiao, head of crude research with Guotai Junan Futures, wrote in a research note. Saudi Arabia has been under pressure since Jamal Khashoggi, a prominent critic of Riyadh and a U.S. resident, disappeared on Oct. 2 after visiting the Saudi consulate in Istanbul. Kingdom would retaliate against possible economic sanctions taken by other states over the case, its state news agency SPA reported on Sunday quoting an official source.


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Thursday, 11 October 2018


BULLION:-
Gold edged down on Friday but held near an over two-month high hit in the previous session, when prices surged over 2 percent as a rout in global stock markets boosted the metal's safe-haven appeal. Spot gold was down 0.2 percent at $1,221.06 an ounce at the time of writing. On Thursday, it jumped about 2.5 percent after marking its highest since July 31 at $1,226.27. That was also the metal's best one-day percentage gain since June 2016. U.S. gold futures were down 0.3 percent at $1,224.50 an ounce. Worries about the economic impact of the Sino-U.S. trade war, a spike in U.S. bond yields this week and caution ahead of earnings seasons have all been cited as potential reasons behind the selloff, the biggest market rout since February.

METALS:-
London aluminium steadied on Friday after metals were caught in a widespread market sell-off this week, but it was set for its biggest weekly drop since June as concerns over raw material costs eased. LME aluminium had edged up 0.3 percent to $2,027 a tonne at the time of writing - still holding above the $2,000 level that has been its base since April. Prices were on course for a loss of nearly 4 percent this week, extending 2018's drop to 11 percent. Putting downward pressure on raw material costs, aluminium maker Norsk Hydro said it would resume half production at its giant Brazilian alumina plant, just days after declaring it would shut down completely. Shanghai Futures Exchange copper rose half a percent to 50,450 yuan ($7,312) a tonne. Open interest in China's copper contract is the lowest in 15 months. U.S. President Donald Trump warned on Thursday there was much more he could do that would hurt China's economy further, showing no signs of backing off an escalating trade war with Beijing.  

ENERGY:-

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 percent for the week. U.S. West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 percent in the previous session to the lowest since Sept. 21. U.S. crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase. The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets. OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday.


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Tuesday, 9 October 2018


BULLION:-
Gold The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 per cent. Stocks on major world markets edged lower on Tuesday, with a decline in the materials sector offsetting rising energy shares. US long-dated Treasury yields fell on Tuesday in choppy trading, as investors took a respite from selling bonds that took rates to multi-year highs following recent economic data and on interest rate prospects over the next year and a half. Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the IMF said on Wednesday

METALS:-
The SHFE 1811 contract also performed strongly overnight. It jumped past 107,000 yuan/mt to the highest since September and ended at 106,950 yuan/mt. The metal was voted as the most promising base metal for 2019 at this year's LME week in London, which might account for the recent increases in prices of futures. We expect LME nickel to hover at $12,800/mt today with the SHFE 1811 contract trading at 105,500-107,500 yuan/mt. Spot prices are seen at 105,000-112,000 yuan/mt. London copper rebounded above the daily moving average to a high of $6,303.5/mt and settled at $6,295/mt on Tuesday after the dollar dipped when US bond yields fell. On the technical front, LME copper managed to stand firmly above the five- and 10-day moving averages and approached the upper Bollinger band. Its MACD red line extended, reflecting the strength of longs. The SHFE 1811 contract soared to a high of 51,140 yuan/mt after it hovered at the daily moving average overnight.

ENERGY:-
Oil prices edged lower on Wednesday after the IMF lowered its global growth forecasts but prices were supported as Hurricane Michael churned towards Florida, causing the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude output. Trade tensions and rising import tariffs were taking a toll on commerce, while emerging markets struggle with tighter financial conditions and capital outflows, the IMF said are peaking at the most opportunistic time given waning global growth narrative," said Stephen Innes, head of trading APAC at OANDA in Singapore. In the United States, nearly 40 percent of daily crude oil production was lost from offshore U.S. Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael



CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Sunday, 7 October 2018


BULLION:-

Gold edged higher on Friday, on track for its biggest weekly gain in six, as the dollar softened after data showed U.S. job growth slowed more than expected last month and a slide in stock markets burnished the appeal of bullion as a safe haven. "The weaker-than-expected jobs data is supporting the overall current mood but the numbers were not disappointing enough to trigger fresh buying," said Heraeus precious metals trader Alexander Zumpfe. However, the Labor Department's monthly employment report also showed a steady rise in wages, suggesting moderate inflation pressures, which could allow the Federal Reserve to maintain a path of gradual interest rate increases. A weaker dollar makes bullion less expensive for buyers using other currencies. But rising interest rates increase the opportunity cost of holding bullion

METALS:-

Last week, LME fell after it gained 3% on Wednesday with resistance at the 40-day moving average and support at $12,000/mt. Stocks across LME inventories continued to decline but on a smaller scale. We expect LME nickel to hover around $12,600/mt today with the SHFE 1811 contract trading at 103,500-105,000 yuan/mt. Spot prices are seen at 103,500-110,000 yuan/mt. London copper lost 0.67% to end at $6,186.5/mt on Friday. SHFE copper faces pressure from a strong US dollar and firm US economy. The recent US-Mexico-Canada Agreement will also put China’s exports under pressure. China’s central bank, however, provided some support. The reserve requirement ratios (RRRs) cut of 100 basis points announced on Sunday is set to bolster the stock market and grow anticipation of investment growth in infrastructure construction in the fourth quarter of the year. We expect LME copper to trade at $6,140-6,210/mt today with the SHFE 1811 contract at 49,000-50,100 yuan/mt. Spot premiums are seen at 20-70 yuan/mt as traders might clean up their stocks and downstream consumers would restock after the week-long break.

ENERGY:-


Oil has rallied to trade near four-year highs on concerns that the looming U.S. restrictions on the Islamic republic will squeeze shipments and spur a global crunch at a time when supplies are already being disrupted in Venezuela and Libya. Investors remain concerned the Organization of Petroleum Exporting Countries and its allies aren’t raising output quickly enough and that they may not have the capacity to fully cover disappearing volumes. Brent for December settlement fell as much as 96 cents to $83.20 a barrel on the London-based ICE Futures Europe exchange and was at $83.30 at 10:28 a.m. in Singapore. The contract slipped 0.5 percent to $84.16 on Friday. The global benchmark crude traded at a $9.66 premium to U.S. West Texas Intermediate for the same month.

 


CapitalStars Provides  Free Trial To Our Client…
Investment & trading in the securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647