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Economic Buzz: Australian Manufacturing Sector Contracts For Nearly Two Years

noreply@blogger.com (mcx free tips) — Thu, 01 Aug 2013 11:13:00 +0000

The Australian manufacturing sector continues to suffer, despite getting help from weak currency and lower interest rates. The Australian Industry Group's Performance of Manufacturing Index (PMI) was 42.0 in July, down 7.6 points from June. The below-50 reading shows activity in the sector is falling. Manufacturing hasn't posted a monthly rise since June 2011.

Manufacturers are telling us that, while the fall in the Australian dollar and the May interest rate cut have been extremely welcome, they have not yet been enough to turn around a very challenging business environment. The weakness in the currency has fuelled higher prices for imported inputs without any real corresponding improvement in stronger exports.

The Reserve Bank Of Australia (RBA) noted last month that survey-based measures of business conditions improved in May, but were still a little below long-run average levels. Over the past few months, measures of sentiment had improved for some industries, including construction and business services, and declined slightly for other industries, most notably mining and manufacturing.

While the volume of resources exports had risen further, and was expected to continue to grow with the addition of new capacity for bulk commodities, the decline in commodity prices over the past year or so had weighed on the resources sector. RBA noted that while mining investment remained at a high level, planning and development work related to future projects had declined significantly since the previous year.

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Commodities Buzz: Global Dairy Giant Upgrades Milk Price Forecasts

noreply@blogger.com (mcx free tips) — Thu, 01 Aug 2013 11:12:00 +0000

The largest biggest dairy processors in the world, Fonterra raised its forecast for its milk price paid to farmers amid thin supplies. New Zealand-based Fonterra, raised by NZ$0.50 to NZ$7.50 per kilogramme of milk solids its forecast for its milk price in 2013-14, taking it NZ$0.10 from the record high set three years before. Fonterra has forecast a dividend of NZ$0.32 on top, taking the total forecast payout to its members to NZ$7.82 per kilogramme of milk solids, a jump of 28% year on year.

However, supply constraints in Europe, a major exporter, and China, the top dairy importing country during the northern hemisphere spring has contributed to an increase in dairy prices of 3% over the past two months.

Dairy supplies have been run down by strong export demand during a 2012-13 season of poor production, which fell by 3.0% in Australia and by 1.6% in New Zealand. However, going ahead in the second half of the year, milk production will be picking up in New Zealand and the EU, and that is likely to bring a global price decline in most dairy products as early as November or December.

Source by Commodity Insights

Technical Comment For The Day: Crude Oil

noreply@blogger.com (mcx free tips) — Wed, 31 Jul 2013 06:26:00 +0000

Crude Oil rally is likely to take it close to Rs 6330 per barrel. Crude oil tested a low of Rs 6224 per barrel and settled at Rs 6285 per barrel. The short term supports for Crude are active at Rs 6210 and 6174 per barrel. The initial targets of Crude oil are at Rs 6330 and 6350 per barrel. Increase in Open interest and volumes are a sign that a rally towards the upper cap is possible.

Source by Commodity Insights

Economic Buzz: U.S Consumer Confidence Falls Slightly In July

noreply@blogger.com (mcx free tips) — Wed, 31 Jul 2013 06:25:00 +0000

The U.S Conference Board Consumer Confidence Index, which had improved in June, pulled back slightly in July. The Index now stands at 80.3 (1985=100), down from 82.1 in June. The Present Situation Index increased to 73.6 from 68.7. The Expectations Index decreased to 84.7 from 91.1 last month.

Source by Commodity Insights

Gold Bounces Back In Asia

noreply@blogger.com (mcx free tips) — Wed, 31 Jul 2013 06:24:00 +0000

Gold........

Gold futures bounced back in the Asia electronic session today as investors prepared for a statement on monetary policy from the U.S. Federal Reserve, as well as the preliminary estimate of second-quarter growth for the world’s largest economy.

The U.S. currency, as tracked by the ICE dollar index, is coming off a third straight weekly loss, dragged lower by expectations that the Fed will reiterate its stance on keeping interest rates low for the foreseeable future.

The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.856, up from 81.815 late Tuesday in North America. The euro bought $1.3260, slightly less than $1.3265 on Tuesday.

Gold for December delivery is trading up $6.6 at $ 1331.4 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $4.80, or 0.4%, to settle at $1,324.80 an ounce after Monday’s gain of $7.70, or 0.6%.

The consumer confidence index fell slightly in July to 80.3 from an upwardly revised 82.1 in June, the Conference Board said Tuesday.

Traders expect the FOMC to emphasize an accommodative monetary policy. Though many economists see the Fed as likely to decrease the amount of bond buying at its September meeting, there’s also speculation that tapering will begin near the end of the year or later. The Fed currently buys $85 billion a month in Treasury and mortgage-backed securities.

Before the central bank’s announcement at 2 p.m. Eastern time, the U.S. Commerce Department will release second-quarter gross domestic product numbers. Meanwhile, the European Central Bank and the Bank of England are due to each release statements on monetary policy Thursday.

MCX October gold futures may open today’s session near Rs 28350-400 levels with resistance near Rs 28550 levels.

Source by Commodity Insights

Technical Comment For Day: Gold

noreply@blogger.com (mcx free tips) — Tue, 30 Jul 2013 06:32:00 +0000

Gold................

Gold breached the ascending triangle pattern for August contract. With few days left in August expiry contract to expire, the interest is quickly shifting towards October contract. In October contract, resistance of Rs 27777 per 10 grams was broken as Gold closed at Rs 27872 per 10 grams. The next resistance is at Rs 28300 and 28400 levels. Looking at the open interest generation in this contract it seems that upside targets will be achieved in the contract. The rise of 1.33% yesterday was with very heavy volumes of 11782 kgs, not seen for this contract since initiation.

Source by Commodity Insights

Technical Comment For Day: Copper

noreply@blogger.com (mcx free tips) — Tue, 30 Jul 2013 06:30:00 +0000

Even after a minor recovery in Copper

, the prices are still not out of woods. The prices of November expiry contract settled at Rs 418.6 per kg, up 0.54%. The metal is expected to remain under Rs 420 per kg, considering the stiff resistance at Rs 418-419 per kg. Medium term resistance is at Rs 430 per kg. The extreme bottom for the prices are at Rs 403 per kg, while an intermediate supports are active at Rs 409 per kg. The volumes were pretty lower 3066 kg on Monday. The pressure from bears are expected to remain active in today's trades.

Source by Commodity Insights

Indian Rupee Weaker Ahead Of RBI Review

noreply@blogger.com (mcx free tips) — Mon, 29 Jul 2013 07:07:00 +0000

The Indian rupee edged down slightly on Monday, July 29, 2013 on month-end dollar demand from importers and ahead of the central bank's rate review on Tuesday. A weak opening to the local equities market also weighed down the currency. The domestic currency commenced lower by 9 paise at Rs 59.13 to a dollar and dropped to a low of 59.32 so far during the day. In the spot currency market, the Indian unit was last seen trading at 59.2450, weaker by around 21 paise or 0.35% as compared to previous close at 59.04.On Friday, the Indian rupee hit a five-week high as the central bank's measures to drain liquidity shore up the currency. The rupee's gains come after the Reserve Bank of India followed up on its measures last week to drain cash to defend the rupee with additional tightening measures on Tuesday.
Domestic key benchmark indices extended initial losses to hit fresh intraday low in morning trade as weakness in Asian stocks dampened sentiment. The S&P BSE Sensex hit 2-1/2-week low. The 50-unit CNX Nifty hit its lowest level in almost three weeks. Asian stocks retreated on Monday, 29 July 2013, with Japanese equities skidding as a firm yen further dragged on the nation's exporters, while Chinese shares lost ground amid economic worries. At the time of writing, the S&P BSE Sensex was down 94.71 points or 0.48% to 19.653.48 while the CNX Nifty was down 31.10 points or 0.53% to 5,855.10.
Meanwhile, the dollar was on the defensive in Asia on Monday as investors braced for an event-packed week that includes central bank meetings in the United States and Europe, manufacturing data from China and U.S. growth and jobs figures. The euro was above 1.32 to the dollar. The dollar index was around 81.50 levels and the dollar yen was around 98 levels.

Source by Commodity Insights

Gold Extends Weekly Gains

noreply@blogger.com (mcx free tips) — Mon, 29 Jul 2013 07:07:00 +0000

Gold.......

Gold futures

started the week on an optimistic note, extending its last week's gains in the Asia electronic session today. The start attractions this week are the Non Farm Payrolls data and the second-quarter GDP data.

Gold futures for August delivery are trading up $5.5 at $ 1327 an ounce on the Comex division of the New York Mercantile Exchange. It dropped 0.55% on Friday to settle the week at $1,321.50 a troy ounce.

On the week, gold prices added 0.69%. The metal is likely to face a resistance near $1350-1400 levels in the near term. The commodity jumped to almost five-week high of USD1,347.85 a troy ounce on Tuesday, a day after a weaker-than-expected report on U.S. home sales fueled market talk that the Federal Reserve will keep stimulus measures in place for now.

The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June. Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

On the data front this week, we have pending home sales, house prices, consumer confidence, construction spending, and the manufacturing PMI, and private sector jobs from US. While jobs number provide each months US data highlight, this week will also see the release of the first estimate of June quarter GDP on Wednesday and a Fed policy meeting to boot. The Federal Reserve, the Bank of England and the European Central Bank all hold policy-setting meetings this week.

MCX August gold futures may open today's session near Rs 27600 levels with resistance near Rs 27700 and support near Rs 27520 levels.

Source by Commodity Insights

Copper Continues To Press Lower, MCX Futures Down 3% Last Week

noreply@blogger.com (mcx free tips) — Mon, 29 Jul 2013 06:55:00 +0000

Copper......

MCX Copper

futures are expected to open a tick lower today as the metal continues to face selling pressure in world markets. Asian equities are down half a percent and worries posed by Chinese demand slowdown are hurting copper. The benchmark COMEX Copper futures are down 0.23% at $3.098 per pound. Rio Tinto PLC said today that it is selling its majority stake in a copper-and-gold mine in Australia for US$820 million to a Chinese resources company, in its latest move to bolster its balance sheet amid a global slowdown in commodities demand. Copper slipped from its six-week highs as the metal felt the pressure of weak Chinese demand. China's manufacturing activity slowed to an 11-month low in July, the first evidence of the Asian economic giant losing further momentum in third quarter. In a survey, British banking giant HSBC said its preliminary purchasing managers' index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August. China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth. The growth in the second largest economy in world has slipped to decade low of around 7.5% and has kept a lid on copper prices over last one and half years. Rising inventories and a surplus in global market have also had a depressing effect. ICSG has reported earlier this week that the world copper markets were in surplus of 50000 tonnes in April 2013. After making seasonal adjustments, the Copper markets were in production surplus of 106000 tonnes. The world copper markets were in surplus of 266000 tonnes in the first four months of 2013. MCX Copper futures slipped nearly 3% last week with the losses exacerbated by the gains in Indian Rupee. The counter ended just above Rs 408 per kg levels and continue extend the slide further today. Overall range is likely to be Rs 405-409.

Source by Commodity Insights

Technical Comment For The Day: Crude Oil

noreply@blogger.com (mcx free tips) — Fri, 26 Jul 2013 06:36:00 +0000

Oil......

The profit booking pressure is active in Crude Oil and the prices are expected to continue to suffer in the hands of bears. Further pressure from Rs 6300 per barrel is expected to be created in the contract. The prices managed to close near to the highest point of the day at Rs 6261 per barrel. A breach of Rs 6220 and 6200 per barrel is likely after the formation of shooting star pattern in the candlesticks.

Source by Commodity Insights

Technical Comment For The Day: Copper

noreply@blogger.com (mcx free tips) — Fri, 26 Jul 2013 06:35:00 +0000

Copper.......

Copper

settled at Rs 417.5 per kg on MCX on Thursday. Yet again, the breach of Rs 422 per kg looked difficult during the day. The prices only managed to test a high of only Rs 419.4 per kg. The upper trendline resistance seems intact at the moment. The same parallel range that has been active between Rs 411 and 423, is expected to remain in place. For Friday, support zone for Copper is at Rs 413 per kg while Resistance is at Rs 422 per kg.

Source by Commodity Insights

Oil Holds Gains In Asia

noreply@blogger.com (mcx free tips) — Fri, 26 Jul 2013 06:34:00 +0000

Oil.......

Crude oil

futures held on to its gains near $ 105 a barrel levels in the Asia electronic trades today buoyed by the positive data from US.

Positive economic news tends to boost oil prices since it raises expectations about improvement in energy demand. Data Thursday showed a 4.2% jump in U.S. durable-goods orders for June, the third straight big monthly gain. The first estimate of second-quarter gross domestic product in the U.K. showed 0.6% quarterly growth, in line with expectations.

Crude oil for September delivery is trading up 6 cents at $ 105.55 per barrel on the New York Mercantile Exchange. Yesterday, it added 10 cents, or 0.1%, to end at $105.49 a barrel after touching a low of $104.08 in electronic trading.

Oil prices on Wednesday fell 1.7% after an HSBC report showed preliminary manufacturing activity in China — among the world’s largest oil consumers.

Taking a look at the long term, the U.S. Energy Information Administration’s International Energy Outlook report on Thursday released a forecast that world energy consumption will grow by 56% between 2010 and 2040 to 820 quadrillion British thermal units from 524 quadrillion Btus. Most of the growth will come from countries that aren’t part of the Organization for Economic Cooperation and Development.

The EIA didn’t release an international energy outlook report in 2012. In 2011, it said it expected world energy consumption to grow by 53% from 2008 to 2035.

On the data front today, Japan's consumer prices managed to register mild inflation in June compared with a year earlier, data out Friday from the Finance Ministry showed. The core consumer price index, which excludes volatile fresh-food costs, rose 0.4% from June 2012, though it was unchanged compared to May's levels.

MCX August crude oil futures may open today’s session near Rs 6235 levels with support around Rs 6200 and resistance near Rs 6290 levels.

Source by Commodity Insights

Gold Rises On Haven Buying

noreply@blogger.com (mcx free tips) — Wed, 24 Jul 2013 11:52:00 +0000

Gold.......

Gold futures rose in the Asia electronic trades today as losses in equity markets triggered safe haven buying in the metal. Yesterday, the metal ended lower, marking its first decline in four sessions just after the metal’s biggest one-day price gain in more than a year.

Gold for August delivery is trading up $6.2 at $ 1340.9 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it eased $1.30, or 0.1%, to settle at $1,334.70 an ounce.

On Monday, the August contract jumped $43.10, or 3.3%, to $1,336 an ounce. That represented the largest one-day percentage and dollar gain since June 29, 2012. The settlement was also the highest for a most-active contract since June 19 of this year.

The Reserve Bank of India (RBI) on Monday put further curbs on gold import mandating that banks and nominated agencies should retain 20 percent (or one fifth) of every lot of gold imports in the customs bonded warehouses. They will be able to import further gold only if they release the 75 percent of that stored gold for the purpose of exports.

The restrictions are meant to contain gold imports, which in addition to oil, is putting pressure on the current account deficit that soared to a record high of 4.8 per cent in 2012-13.

The RBI and the government have taken measures to curb the rampant demand for gold, which makes India the world's biggest buyer and sent May imports to a record 162 tonnes as people took advantage of falling prices.

MCX August gold futures may open today’s session near Rs 27540 levels with resistance near Rs 27600-620 around Rs 27460-40 levels.

Source by Commodity Insights

Technical Comment For The Day: Copper

noreply@blogger.com (mcx free tips) — Wed, 24 Jul 2013 11:49:00 +0000

Copper.......

Benchmark MCX Copper prices were yet again in trouble reaching Rs 422 per kg. The August contract settled at Rs 421.85 per kg, up 0.50 percent. Expectations for the prices to cross the hurdle of Rs 422 per kg are grim considering the weak PMI numbers of China. The opening is expected to be dull. The parallel trading channel of Copper between Rs 422-424 on higher side and Rs 413-411, on the lower side remains unthreatened at this juncture. The far month November expiry contract looks tugged at Rs 430-432, on higher side. Open interest has remained averaging around 25400 in the last few days. Volumes on the other hand are getting weak considering the expiry is the next week.

Trading Strategy: SELL MCX COPPER AUG AT 422.5-423 TARGET 417 SL 425.5

Source by Commodity Insights

Technical Comment For The Day: Gold

noreply@blogger.com (mcx free tips) — Wed, 24 Jul 2013 11:47:00 +0000

Gold.......

MCX Gold August contract closed at Rs 27574 per 10 grams, gaining only 0.05 percent in the day. The prices were on the way to test Rs 27800 as the target before profit booking kicked in. The consolidation in Gold got broken this week as the prices managed to surpass Rs 26700 per 10 grams as the key Resistance. The rally has been supported by steady open interest. The bulls will still be active once the profit taking gets over. The immediate targets for the day however will be revised to Rs 27650.

Trading Strategy: BUY MCX GOLD AT 27350 TARGET 27650 SL 27280

Source by Commodity Insights

Indian Rupee Ends Weak

noreply@blogger.com (mcx free tips) — Mon, 22 Jul 2013 12:45:00 +0000

The Indian rupee closed weaker on Monday, July 22, 2013 on account of choppy local shares and a strong demand for the greenback from domestic importers. The domestic currency commenced at Rs 59.30, higher by around 5 paise and dropped lower though the day. It is about a percent above its record low of 61.21 hit on July 8. In the spot currency market, the Indian unit was last seen trading at 59.73, lower by around 38 paise or 0.64% as compared to previous close at 59.35. The rupee gained on Friday after the central bank was rumoured to be intervening late in the session to support the currency that has floundered and been on the verge of wiping out all gains since policymakers' measures to drain liquidity.
Concerns have risen about the success of the steps after the government cancelled a treasury bill sale and the central bank had to reject most bids at a special bond sale as investors demanded higher yields. At least the rupee drew some solace from Prime Minister Manmohan Singh's comments that the RBI can withdraw measures once short term pressures ease.
Domestic benchmark indices provisionally closed near the flat line after witnessing intraday volatility. Asian markets edged higher on Monday, 22 July 2013, after China removed a floor on banks' lending rates and after Japan's ruling government regained control of the parliament's upper house, raising hopes for further reforms in both economies. Foreign institutional investors (FIIs) bought shares worth a net Rs 252.26 crore on Friday, 19 July 2013, as per provisional data from the stock exchanges. At the provisional closing, the S&P BSE Sensex was up 8.59 points or 0.04% to 20,158.44. The CNX Nifty was up 1.45 points or 0.02% to 6,030.65, as per provisional figure.
EUR/USD trades in the mid-1.31 range in Monday's European session. The market reaction to US Fed chair Bernard Bernanke's testimony last week in Washington was quite restrained, and had little impact on EUR/USD.
Source by Commodity Insights

Gold Jumps Near 2% In Europe

noreply@blogger.com (mcx free tips) — Mon, 22 Jul 2013 12:45:00 +0000

Gold......
Gold futures are trading steady near 1 month highs supported by weakness in the dollar and strong oil futures. Today, the metal struck as high as $1322.50 an ounce, its highest since June 20.
Oil for August delivery rose 40 cents, or 0.4%, to $108.45 a barrel in electronic trade with weakness in the dollar providing a platform for the commodity to reach for a new 52-week high.

Gold for August delivery climbed $25.70, or 2%, to $1,318.90 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange. It ended up 0.7% to $1,292.90, the highest settlement for a most-active contract since June 19.
Gold prices finished last week higher by 1.2%, gaining in part after U.S. Federal Reserve Chairman Ben Bernanke said in congressional testimony that the central bank had no set timetable for slowing its monetary stimulus. The stimulus measures, known as quantitative easing, have been considered supportive for gold prices.
The dollar-denominated commodity benefitted from a decline in the greenback overnight, with the moves weighing on the ICE dollar index. The dollar lost some ground against the Japanese yen as Prime Minister Shinzo Abe’s ruling party consolidated its power in this weekend’s election.
Hedge funds and money managers raised their bullish bets in gold and silver futures and options in the week to July 16, while they trimmed net shorts in copper, a report by the Commodity Futures Trading Commission showed on Friday.
MCX August gold futures are trading up nearly Rs 400 at Rs 27090 per 10 grams. The counter hit a high of Rs 27180 earlier today.
Source by Commodity Insights

Economic Buzz: Swiss June Trade Balance Rises

noreply@blogger.com (mcx free tips) — Thu, 18 Jul 2013 06:35:00 +0000

Federal Statistical Office said that Swiss Trade Balance rose to a seasonally adjusted CHF 2.732B, from CHF 2.123B in the preceding month whose figure was revised down from CHF 2.224B. Analysts had expected Swiss Trade Balance to fall to CHF 1.850B last month.
Source by Commodity Insights

Indian Rupee Snaps Gains

noreply@blogger.com (mcx free tips) — Thu, 18 Jul 2013 06:34:00 +0000

The Indian rupee commenced weaker on Thursday, July 18, 2013 despite positive local shares as Federal Reserve Chairman Ben Bernanke's speech was slightly more dovish than the market expected. The domestic currency opened lower by 28 paise at Rs 59.63 to a dollar and edged up to a high of 59.56 before dipping back to a low of 59.79 so far during the day. In the spot currency market, the Indian unit was last seen trading at 59.77, down almost 42 paise or 0.71% as compared to previous close at 59.35.
Rupee posted slight falls on Wednesday as continued dollar demand from importers eroded early gains from the government's decision to relax foreign direct investment rules in various sectors. The currency's weakness, in spite of strong steps taken by the Reserve Bank of India late on Monday to support the currency, shows demand for dollars remains strong, overriding the central bank's attempt to stamp down on speculation. India relaxed foreign direct investment (FDI) rules on Tuesday in a broad swath of industries including telecoms, to prop up a sliding currency and increase confidence about the record high current account deficit.
Domestic key benchmark indices edged higher in early trade on mostly higher Asian stocks. Asian shares inched up to a near five-week high on Thursday after U.S. Federal Reserve Chairman Ben Bernanke pledged to keep monetary policy easy for the foreseeable future. India's barometer index, the BSE Sensex, moved above the psychological 20,000 mark. The CNX Nifty hit the psychological 6,000 mark. Foreign institutional investors (FIIs) sold shares worth a net Rs 26.09 crore on Wednesday, 17 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 101.28 points or 0.51% to 20,050.01 while the CNX Nifty was up 28.90 points or 0.48% to 6,002.20.
Meanwhile, the dollar held on to modest overnight gains early in Asia on Thursday after a choppy session that saw investors first sell then buy back the currency in reaction to Bernanke's comments. The euro holds above 1.31 to the dollar. The dollar index was below the 83 mark.
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Technical Comment For the Day: Crude

noreply@blogger.com (mcx free tips) — Thu, 18 Jul 2013 06:33:00 +0000

Oil.......

MCX Crude is in a narrow trading band as the skepticism for further pullback rally in prices look dim. The prices managed to corner some gains of Rs 53 per barrel and settled at Rs 6295 per barrel. Going forward the cap of Rs 6350 and 6400 is near. The prices are expected to succumb from those levels to move down. Interesting to note, that open interest in the near month contract has shown steady decline in last few days. Even the volumes have declined to 103563. The base for this contract is at Rs 6210 per barrel levels.
TRADING STRATEGY: SELL AROUND 6350-6360, TARGET 6270 SL 6410
Source by Commodity Insights

Economic Buzz: Australia May Westpac Leading Index Shows Upside

noreply@blogger.com (mcx free tips) — Wed, 17 Jul 2013 05:53:00 +0000

The Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, was 4.9 per cent in May - above its long-term trend of 3 per cent but lower than its April reading of 5.4 per cent. The leading indicator of Australia's economic activity improved in May, while staying above its long-term trend for a sixth consecutive month, a report from Westpac and the Melbourne Institute revealed Wednesday.
With the improvement in the Index being narrowly based around the quarterly components of corporate profits and productivity with little contribution from the cyclical components, we feel justified in qualifying the markedly optimistic reads from the Index over the last few months, Westpac Chief Economist Bill Evans said.
The annualized growth rate of the coincident index, which gives a pulse of current activity, was 2.7 percent, slightly below its long term trend of 2.9 percent.
Source by Commodity Insights

Indian Rupee Extends Gains

noreply@blogger.com (mcx free tips) — Wed, 17 Jul 2013 05:52:00 +0000

The Indian rupee extended its previous day gains on Wednesday, July 17, 2013 following measures by the RBI to curb volatility in the currency. Besides, positive local shares also supported the unit. The domestic currency opened higher by 18 paise at Rs 59.14 to a dollar and slipped to a low of 59.22 before edging back to a high of 59.10 so far during the day. In the spot currency market, the Indian unit was last seen trading at 59.17, stronger by almost 16 paise or 0.26% as compared to previous close at 59.32.
Indian government bonds slumped and interest rate swaps surged on Tuesday, while the rupee posted modest gains after the central bank took steps to rein in rupee liquidity, in a move that will raise interest rates in the economy. The RBI pushed up the rate at which it lends money to banks by 200 basis points to 10.25 per cent. The marginal standing facility, which is the rate at which banks borrow additional funds from the RBI, will now be at 10.25 per cent. Bonds and stocks plunged. The RBI also said that it will conduct Open Market Sales of Government of India Securities of Rs 12000 crore on Thursday, 18 July 2013. The RBI said it will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary, consistent with the growth-inflation dynamics and macroeconomic stability.
India will fully and safely fund its current account deficit this fiscal year without depleting its forex reserves, Finance Minister P. Chidambaram said on Tuesday. The deficit hit 4.8 percent of GDP in the previous fiscal year that ended in March. Chidambaram said he was confident of keeping the current account gap below last year's levels with some stern steps.
Meanwhile, domestic key benchmark indices edged higher in early trade boosted by government's decision on Tuesday, to relax overseas-investment rules for a number of sectors and as Asian shares inched higher. Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 357.40 crore on Tuesday, 16 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 71.83 points or 0.36% to 19,923.06 while the CNX Nifty was up 18.25 points or 0.31% to 5,973.50.
The dollar held a three-week low on expectations Federal Reserve Chairman Ben Bernanke will reiterate later in the day that U.S. monetary policy is to stay accommodative. The dollar stayed on the defensive in early Asian trade on Wednesday as investors suffered a case of cold feet ahead of Federal Reserve Ben Bernanke's semi-annual testimony in Congress later in the day. The euro rose to 1.31 to the dollar. The dollar index slipped below the 83 mark ahead of testimony by Federal Reserve Chief Ben Bernanke.
Source by Commodity Insights

LME Metals Prices- 16 July 2013

noreply@blogger.com (mcx free tips) — Wed, 17 Jul 2013 05:52:00 +0000

Source by Commodity Insights

Indian Rupee Snaps Three Day Rally

noreply@blogger.com (mcx free tips) — Fri, 12 Jul 2013 07:33:00 +0000

The Indian rupee edged lower at commencement on Friday, July 12, 2013, snapping a three day rally against the US dollar on account of a rebound in the greenback overseas. The domestic currency opened lower by around 11 paise at Rs 59.79 to a dollar and climbed to a high of 59.74 before slipping back to a low of 59.8950 so far during the day. In the spot currency market, the Indian unit was last seen trading at 59.8925, weaker by 21 paise or 0.34% as compared to previous close at 59.69.

Rupee edged lower on Thursday as importers including oil firms bought dollars, while the initially big impact from Federal Reserve Chairman Ben Bernanke's comments on U.S. stimulus faded later in the session. Bernanke said the Fed would continue to pursue an accommodative monetary policy as inflation remained low and the unemployment rate might be understating the weakness of the labour market.

Meanwhile, domestic investors are awaiting industrial output and consumer price inflation data due after market hours on Friday for near-term direction. Industrial production is seen rising a tepid 1.5% in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had risen 2.3% in April 2013. Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 9.3% in June 2013, same as in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation had eased to 9.31% in May 2013 from 9.39% in April 2013.

Domestic key benchmark indices further pared gains to hit fresh intraday low in morning trade. Most Asian stocks fell on Friday, 12 July 2013, as investors turned cautious ahead of Chinese data, including second-quarter growth and June industrial production which is scheduled for release next week. Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 638.26 crore on Thursday, 11 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 124.92 points or 0.63% to 19,800.98 while the CNX Nifty was up 17.10 points or 0.29% to 5,952.20.

The U.S. dollar was quietly nursing its losses on Friday as the smoke cleared after a couple of sessions of wild action that left markets hoping for a bit of calm and consolidation.

Source by Commodity Insights