Daily Commodity Roundup as onreport.systematixshares.com/Commodity/SYSTEMATIX... · MCX Gold Oct...
Transcript of Daily Commodity Roundup as onreport.systematixshares.com/Commodity/SYSTEMATIX... · MCX Gold Oct...
Daily Commodity Roundup as on Tuesday, August 28, 2018
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 1
14.87CRUDE $
68.83
-0.16 0.17 0.16
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1209.31SILVER $
USDJPY111.327
-0.05 -0.16 0.25EURUSD
1.1673GBPUSD
1.28725
LME
NICKEL
13360
0.02 0.59 -0.45
LME
COPPER
6070 LME
ZINC
2541
$ INDEX94.86
0.53 0.36 0.11
LME ALUMINIUM
2095 LME
LEAD
2086
DJIA25790
1.16 1.17 0.52SENSEX
38694NIFTY
11692
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI22889
0.3 0.62 0.39USDINR
70.15 S&P
INDEX
2875
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MCX Gold Oct 2018
Gold prices gained as a weaker U.S. dollar and trade tensions boosted the precious metal.
Gold on MCX settled up 0.33% at 30002 as a weaker U.S. dollar and
trade tensions boosted the precious metal. The dollar also eased on
comments from the Federal Reserve chairman in support of a gradual
approach to raising rates. Meanwhile, officials from China and the U.S.
are expected to meet later this month to resume trade negotiations, after
the last round of trade talks ended with little progress. The U.S. imposed
tariffs on $16 billion of Chinese goods on Aug. 24, with China issuing
reciprocal tariffs and threatening to file a complaint with the World Trade
Organization. Powell said during a speech at the Jackson Hole Symposium
in Wyoming last Friday that "further, gradual" rate hikes were likely in the
future, noting the economy is "strong" and able to withstand tighter
monetary policy. His comments came despite President Donald Trump’s
criticism of higher borrowing costs as he said recently that he is “not
thrilled” with the Fed’s decision to hike rates. China's net gold imports via
main conduit Hong Kong fell about 45 percent in July from the previous
month amid lacklustre demand, data showed. Imports via Hong Kong fell
to 44.802 tonnes in July from 80.867 tonnes in June, according to data
from the Hong Kong Census and Statistics Department. Total gold imports
via Hong Kong also plunged 45 percent to 48.635 tonnes in July from
88.608 tonnes in June. In June, China's net gold imports via Hong Kong
jumped 40.3 percent month-on-month to their highest since March 2017.
Technically now Gold is getting support at 29897 and below same could
see a test of 29791 level, And resistance is now likely to be seen at
30095, a move above could see prices testing 30187.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
29910
SUPPORT 3
30293 30187 30095 29897 29791 29699
30081 29883 30002 0.33 8058
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 29791-30187.
Powell said during a speech at the Jackson Hole Symposium in Wyoming last Friday that "further, gradual" rate hikes were likely in the future.
His comments came despite President Donald Trump’s criticism of higher borrowing costs as he said recently that he is “not thrilled” with the Fed’s decision to hike rates.
Hedge funds and money managers increased their net short position in COMEX gold contracts to another record in the week to Aug. 21.
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MCX Silver Sep 2018
Silver gained boosted by short-covering and as comments from the head of Fed signalling a gradual approach to interest rate hikes weighed on dollar.
Silver settled up 0.39% at 37150 boosted by short-covering and as
comments from the head of Fed signalling a gradual approach to interest
rate hikes weighed on dollar. Fed chairman Jerome Powell’s remarks did
not change market expectations for further monetary tightening despite
opposition from President Donald Trump. But the market interpreted
Powell’s speech as dovish after he said a gradual approach to raising rates
remained appropriate to protect the U.S. economy, keep job growth
strong and inflation under control. The German second-quarter GDP came
in at 0.5%. It met market expectations and remained unchanged from
the previous quarter. On a year-over-year basis, the GDP rose 2.3%. The
US durable goods orders fell faster than expected by 1.7% in July as
volatile demand for commercial planes fell. Orders for non-defence capital
goods excluding aircraft, a closely watched proxy for business spending
plans, rose 1.4% last month. Business spending on equipment is being
supported by the Trump administration’s $1.5 trillion income tax cut
package, which came into effect in January. But there are worries that
trade tensions between the United States and its major trade partners,
including China, Canada, Mexico and the European Union, could offset the
fiscal stimulus." Hedge funds and money managers raised their net short
position in silver futures and options, U.S. CFTC data showed. Hedge
funds and money managers raised their net short position in silver by
5,186 contracts to 25,373 contracts, the largest since early April, CFTC
data showed. Technically market is under short covering as market has
witnessed drop in open interest by -7.9% to settled at 19190, now Silver
is getting support at 37007 and below same could see a test of 36865
level, And resistance is now likely to be seen at 37277, a move above
could see prices testing 37405.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
37020 37263
37547 37405 37277 37007 36865 36737
36993 37150 0.39 19190
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36865-37405.
Fed Chair Powell made the case that gradual rate hikes were the best way to protect U.S. economic recovery, keep job growth strong and inflation under control.
Prices has lost its appeal as a safe-haven asset recently as investors turned to dollar instead amid recent international trade disputes and the Turkish currency crisis.
The US durable goods orders fell faster than expected by 1.7% in July as volatile demand for commercial planes fell.
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MCX Crudeoil Sep 2018
Crude oil gains supported by a strengthening equities market and news that the United States and Mexico agreed to overhaul the NAFTA.
Crudeoil on MCX settled up 0.46% at 4826 supported by a strengthening
equities market and news that the United States and Mexico agreed to
overhaul the North American Free Trade Agreement (NAFTA). An OPEC
and non-OPEC monitoring committee found that oil producers
participating in a supply-reduction agreement cut output in July by 9
percent more than called for in their pact, sources said. The findings for
last month compare with a compliance level of 120 percent for June and
147 percent for May, meaning participants have been steadily increasing
production. The Organization of the Petroleum Exporting Countries and
other producers led by Russia pledged on June 22-23 to return to 100
percent compliance with agreed cuts of 1.8 million barrels per day, a pact
that began in January 2017. Producers had for months been cutting in
excess of the agreed amount, driven by output declines in places such as
Venezuela, Nigeria and Libya. U.S. energy companies cut nine oil drilling
rigs last week, taking the total to 860, the biggest reduction since May
2016, energy services firm Baker Hughes said. Members of an OPEC and
non-OPEC ministerial monitoring committee will hold a conference call
later on Monday to discuss progress on their production curbs agreement.
The Organization of the Petroleum Exporting Countries and other
producers led by Russia agreed in June to return to 100 percent
compliance with oil output cuts that began in January 2017. The
committee groups Saudi Arabia, Russia, the United Arab Emirates,
Kuwait, Algeria, Venezuela and Oman. Technically now Crudeoil is getting
support at 4802 and below same could see a test of 4779 level, And
resistance is now likely to be seen at 4843, a move above could see
prices testing 4861.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
4818 4838
4884 4861 4843 4802 4779 4761
4797 4826 0.46 13160
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 4779-4861.
Despite these worries, the crude market will likely draw support from U.S. sanctions against Iran, which from November will include oil exports.
U.S. energy companies cut nine oil drilling rigs last week, dropping to 860, the biggest reduction since May 2016, energy services firm Baker Hughes said.
OPEC-member Iran has exported around 2.5 million barrels per day of crude oil so far this year.
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MCX Copper Aug 2018
Copper gains as the dollar came under pressure after United States and Mexico reached a bilateral trade deal.
Copper on MCX settled up 0.54% at 418.50 gained on short covering as a
weaker US dollar and improved market sentiment are expected to
continue to buoy copper prices in the short run. While 422 will act as
strong resistance as the trade war between the United States and China
clouded the demand-outlook for industrial metals. A surging Chinese
yuan is likely to drive LME copper to outperform the contract yesterday.
Three-month copper on the London Metal Exchange had dropped 0.6
percent to $6,066.50 a tonne by 0330 GMT, while the most-traded copper
contract on the Shanghai Futures Exchange slid 0.4 percent to 48,540
yuan ($7,061.39) a tonne. The U.S. Commerce Department said on
Monday it had made a preliminary determination that imports of certain
steel wheels from China were subsidized at rates ranging from 58.75
percent to 172.51 percent, and it would impose duties on the product.
China’s investment growth, already at record lows, may weaken even
further in the future and authorities should step up fiscal and financial
measures to give it a boost, the state planner said on Monday. Meanwhile
Beijing is urging more infrastructure spending as the economy faces both
domestic and external risks, such as U.S. tariffs. But the benefits will take
time to kick in, with market expecting the economy to get worse before it
gets better. Now technically market is under short covering as market
has witnessed drop in open interest by -1.56% to settled at 24258 while
prices up 2.25 rupees, now Copper is getting support at 417.1 and below
same could see a test of 415.7 level, And resistance is now likely to be
seen at 420.3, a move above could see prices testing 422.1.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
417.90
SUPPORT 3
423.5 422.1 420.3 417.1 415.7 413.9
420.75 417.50 418.50 0.54 24258
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 415.7-422.1.
China's investment growth, already at record lows, may weaken even further in future and authorities should step up fiscal and financial measures to give it a boost.
Copper stocks across Shanghai bonded areas shrink 2,400 mt from a week ago to 477,900 mt as of now.
Warehouse stock for Copper at LME was at 267075mt that is up by 125mt.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 6
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MCX Zinc Aug 2018
Zinc prices gained as inventories in China languish at their lowest in a decade.
Zinc on MCX settled up 0.14% at 178.20 gained on short covering but
lacked upward momentum with pressure from rising shorts. An inflow of
imported zinc and sluggish downstream consumption will further weigh on
prices. Yesterday support seen as Shanghai base metal prices rose, with
zinc climbing for a sixth day and hitting a two-week high as inventories in
China languish at their lowest in a decade. Zinc stocks in warehouses
monitored by the Shanghai Futures Exchange fell 11.8 percent last week
to 30,800 tonnes, their lowest since October 2007. Meanwhile, zinc
inventories in warehouses approved by the London Metal Exchange have
dropped for eight straight days. ShFE zinc has lost 15 percent year-to-
date, weighed down by concerns over global oversupply and fears the U.S-
China trade row will hurt demand for industrial metals. Last night the US
dollar slumped to the lowest in four weeks at 94.76 while the Mexican
peso climbed higher after the two countries reached a preliminary trade
deal that could replace the North American Free Trade Agreement
(NAFTA). Now Market participants should monitor developments such as
Germany’s actual monthly retail sales in July, US wholesale inventories in
July, and its Conference Board (CB) consumer confidence index for
August. Technically market is under short covering as market has
witnessed drop in open interest by -0.24% to settled at 5086 while prices
up 0.25 rupees, now Zinc is getting support at 177.1 and below same
could see a test of 176.1 level, And resistance is now likely to be seen at
178.9, a move above could see prices testing 179.7.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
176.9
SUPPORT 3
180.7 179.7 178.9 177.1 176.1 175.3
178.7 176.9 178.2 0.14 5086
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 176.1-179.7.
Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007.
Worries about a tight LME zinc market have receded as a large holding of 50 to 79 percent of stocks has been cut.
Warehouse stock for Zinc at LME was at 247400mt that is down by -1175mt.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 7
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MCX Nickel Aug 2018
Nickel prices traded in range due to lack of direction as LME was closed but current low inventories likely to bolster prices.
Nickel on MCX settled down -0.16% at 932.20 tracking weakness from
ShFE Nickel prices which was the lone laggard, falling 0.9 percent to
108,760 yuan a tonne despite the dollar came under pressure after
United States and Mexico reached a bilateral trade deal. The dollar fell
sharply, helping gold prices to mount a further advance beyond the
psychologically important $1,200 level, as President Donald Trump
announced his administration had reached a bilateral deal with Mexico.
The U.S. dollar index, which measures the greenback against a trade-
weighted basket of six major currencies, fell by 0.46% to 94.64. Trump
suggested a United States-Mexico Trade Agreement replace the North
American Free Trade Agreement (NAFTA). But this still paves the way for
Canada to rejoin talks, bringing Trump a step closer to overhauling
NAFTA, reducing investor fears over a full-blown trade war. Last night the
US dollar slumped to the lowest in four weeks at 94.76 while the Mexican
peso climbed higher after the two countries reached a preliminary trade
deal that could replace the North American Free Trade Agreement
(NAFTA). Now Market participants should monitor developments such as
Germany’s actual monthly retail sales in July, US wholesale inventories in
July, and its Conference Board (CB) consumer confidence index for
August. Technically market is under fresh selling as market has witnessed
gain in open interest by 2.43% to settled at 7794 while prices down -1.5
rupees, now Nickel is getting support at 929 and below same could see a
test of 925.8 level, And resistance is now likely to be seen at 936.4, a
move above could see prices testing 940.6.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
936
SUPPORT 3
943.8 940.6 936.4 929.0 925.8 921.6
937.4 930 932.2 -0.16 7794
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 925.8-940.6.
China is likely to produce 400,000 mt, in metal content, of high-grade nickel pig iron (NPI) within this year.
Domestic production of high-grade NPI picked up after nationwide environmental reviews from May to June.
Warehouse stock for Nickel at LME was at 242604mt that is down by -948mt.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 8
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NCDEX Jeera Sep 2018
Jeera dropped on profit booking following reports of good rain fall in producing areas of Gujarat.
Jeera on NCDEX settled down -1.55% at 19330 tracking weakness in spot
demand and in the absence of export buying. There are reports of around
3 million bags jeera in Unjha markets. At present, India is the lone
supplier of jeera in the global market as output and stocks are lower in
Turkey and Syria. Jeera exports during this fiscal may touch 175,000 ton
level up from 143,670 ton jeera during 2017-18 on the back of week
Indian rupee which made Indian commodity cheaper in the global
markets. A trade body-The Federation of Indian Spices Stakeholders
(FISS) - projected India's 2017-18 jeera output at 6.92 million bags up
19% on year on the back of higher acreage and favourable weather. India
exported 143,670 ton jeera during 2017-18 up from 119,000 ton a year
ago due to increased demand from China and Bangladesh. At New Delhi
market , estimated market supply was at 8000 quintals, higher by 3000
quintals from previous trading day. At Merta City(Raj.) sources reported
arrivals at 800 quintals, higher by 300 quintals from previous trading day.
As per trade information, crop damaged reported in Syria and Turkey due
to heavy rainfall in June support Indian Jeera in International market.
Quality wise (due to heavy rainfall) and price wise Indian Jeera more
affordable than other producing country. Technically market is under long
liquidation as market has witnessed drop in open interest by -0.35% to
settled at 6822 while prices down -305 rupees, now Jeera is getting
support at 19008 and below same could see a test of 18687 level, And
resistance is now likely to be seen at 19708, a move above could see
prices testing 20087.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19290
SUPPORT 3
19980 19740 19360 18740 18500 18120
19500 18880 18975 -1.84 6477
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6325-6325.
Jeera arrivals stood at 8,700 ton during July as against 3,800 ton a year ago in the same period.
NCDEX accredited warehouses jeera stocks gained by 33 tonnes to 2770 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19620 rupee per 100 kg.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 9
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NCDEX Turmeric Sep 2018
Turmeric dropped tracking weakness on reports of higher sowing.
Turmeric on NCDEX settled down by -1.46% at 6768 tracking weakness
on reports of higher sowing. However, downside seen limited amid
reports of some losses in Tamil Nadu due to adverse weather conditions.
Turmeric acreage improved in all the major producing states due to
favourable weather and higher prevailing prices. In Telangana, Turmeric
sowing reported 45,583 hectares as compared to 38,254 hectares in the
corresponding period last year. 83% sowing completed from season
normal. Till now, Nizamabad region reported 13,993 hectares compared
to last year 9,859 hectares and Warangal (rural) reported 4,453 hectares
compared to last year 3,825 hectares. In Andhra Pradesh, Turmeric
sowing reported 12,320 hectares as compared to 7,998 hectares in the
corresponding period last year, 68% sowing completed from season
normal. In Telangana, Turmeric sowing as on 01 August 2018 reported
46,692 hectares as compared to 41,715 hectares in the corresponding
period last year. 85% sowing completed from season normal. As per
estimates, in normal monsoon condition Turmeric all India area may go
up by 12 - 14% as compared to last year due to higher prices. Spot
turmeric prices decreased at the markets in Erode due to the non-receipt
of fresh upcountry demand. Further, the second turmeric sale season will
start by September, so the farmers, expecting good price for their
produce, held back and brought only medium and poor quality turmeric.
In Nizamabad, a major spot market in AP, the price ended at 7030
Rupees dropped -25.95 Rupees.Technically market is under long
liquidation as market has witnessed drop in open interest by -11.6% to
settled at 12650, now Turmeric is getting support at 6678 and below
same could see a test of 6586 level, And resistance is now likely to be
seen at 6902, a move above could see prices testing 7034.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6862
SUPPORT 3
7126 7034 6902 6678 6586 6454
6942 6718 6768 -1.46 12650
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6586-7034.
However, downside seen limited amid reports of some losses in Tamil Nadu due to adverse weather conditions.
NCDEX accredited warehouses turmeric stocks gained by 30 tonnes to 4826 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7030 Rupees dropped -25.95 Rupees.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 10
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MCX Menthaoil Sep 2018
Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.
Mentha oil on MCX settled up by 2.47% at 1764.2 due to bullish demand
outlook from domestic market as well as exporters. Spot markets are also
witnessing strong consumption demand amid restricted supplies. Bumper
crop harvest has been discounted in the market and market is moving
upwards on rising demand from end users. Arrivals in Sambhal stood at
400 drums compared to 350 drum a day ago while in Barabanki supplies
rose to 500 drums from 450 drums a day earlier. According to preliminary
estimates, mentha oil production in 2018-19 would be 40,000-45,000 ton
against last year's production of 35,000 tons. There could be chances of
crop damage to certain extend due to unfavourable weather condition.
Besides, farmers are likely to hold back the stocks as the present prices
are not remunerative for them. However, in recent years, the growth in
production and consumption of synthetic mentha has influenced the
demand for natural mentha. As per sources, India contributes around
80% to the total global mentha oil production. Total global production
stood at around 48,000 tonnes, out of which India produces between
30,000-40,000 tonnes. According to estimates, mentha oil production in
India for crop year 2016-17 will be around 38,000 tonnes. Mentha oil
spot at Sambhal closed at 1999.20 per 1kg. Spot prices was up by
Rs.61.70/-.Technically market is under fresh buying as market has
witnessed gain in open interest by 25.47% to settled at 1606 while prices
up 42.5 rupees, now Menthaoil is getting support at 1746 and below
same could see a test of 1727.9 level, And resistance is now likely to be
seen at 1777.1, a move above could see prices testing 1790.1.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1759.90
SUPPORT 3
1808.2 1790.1 1777.1 1746.0 1727.9 1714.9
1772.00 1740.90 1764.20 2.47 1606
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1727.9-1790.1.
Mentha oil spot at Sambhal closed at 1999.20 per 1kg. Spot prices was up by Rs.61.70/-.
Spot markets are also witnessing strong consumption demand amid restricted supplies.
Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 11
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER 125 267075
ALUMINIUM -4850 1095125
NICKEL -948 242604
LEAD 175 126725
ZINC -1175 247400
3982 23030 18975 4151 6768 4006 591.2 3184
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX CHANA Sep
2018
NCDEX Cotton Oct
2018
NCDEX Jeera Oct
2018
NCDEX Guarseed10
Oct 2018
NCDEX Turmeric
Sep 2018
NCDEX Rmseed Sep
2018MCX CPO Aug 2018
NCDEX Soyabean
Oct 2018
NCDEX
Ref.Soya oil
Sep 2018
729.65CLOSE
P. POINT 4026 23077 19120 4218 6810 4027
4097 23244 19360 4299 6902 4054
RESISTANCE
4284 23624 19980 4527 7126 4128
591.7 3208 729
742
4213 23457 19740 4446 7034 4101 597.1 3307 738
599.6 3344
594.2 3245 733
3990 6586 3953 586.3 3109 720
3910 22864 18740 4071 6678 3980 588.8 3146
715
Cng in OI -10.66 -2.34 -5.06 2.20 -11.60 -8.01 -9.49 7.24 -5.88
SUPPORT
3723 22484 18120 3843 6454 3906 583.4 3047
724
3839 22697 18500
Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
1:30pm EUR M3 Money Supply y/y 0.043 0.044
TREND Long Liquidation Long Liquidation Long Liquidation Fresh Selling Long Liquidation Long Liquidation Long Liquidation Fresh Selling
1:30pm EUR Private Loans y/y 0.03 0.029
6:00pm USD Goods Trade Balance -68.6B -67.9B
6:00pm USD Prelim Wholesale Inventories m/m 0.001 0.001
6:30pm USD S&P/CS Composite-20 HPI y/y 0.064 0.065
7:30pm USD CB Consumer Confidence 126.6 127.4
7:30pm USD Richmond Manufacturing Index 18 20
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 12
125
-4850
-948
175
-1175
-6000
-5000
-4000
-3000
-2000
-1000
0
1000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
The euro area private sector continued to expand in August, but the rate of expansion remaining one of the weakest seen over the past year-and-a-half and optimism
among companies fell to a 23-month low on rising political concerns and higher prices. The composite output index rose marginally to 54.4 in August from 54.3 in July,
flash data from IHS Markit showed Thursday. But, the score was slightly below the forecast of 54.5. August's small increase in the Eurozone PMI suggests that the
region's economy is continuing to perform well in third quarter, which will reassure the European Central Bank that it is right to be normalizing monetary policy very
gradually. Although growth rates in euro area improved slightly in manufacturing and services, both remained among the weakest seen for at least one-and-a-half years.
The services Purchasing Managers' Index came in at 54.4 in August, up from 54.2 a month ago and in line with expectations. Meanwhile, the manufacturing PMI fell
unexpectedly to a 21-month low of 54.6 from 55.1 in July. The reading was expected to rise slightly to 55.2.
China will keep hitting back at Washington as more U.S. trade tariffs are imposed, but its counter-strikes will remain as targeted as possible to avoid harming businesses
in China – whether Chinese or foreign, Finance Minister Liu Kun said. For now the impact of the China-U.S. "trade frictions" on the Chinese economy has been small, but
he is concerned about potential job losses and lost livelihoods, Liu, 61, told in an interview at the finance ministry, his first with the media since taking up the position in
March. He said that the Chinese government will increase its spending to support workers and the unemployed who are hurt by the trade conflict, and also predicted bond
issuance by local governments to support infrastructure investment this year will pickup and blow past 1 trillion yuan ($145.48 billion) by the end of the current quarter.
The trade conflict further escalated as the United States and China heaped more tariffs on each other's goods. Since early July, the world's two largest economies have
slapped each other with tariffs on a combined $100 billion of goods. "China doesn't wish to engage in a trade war, but we will resolutely respond to the unreasonable
measures taken by the United States," Liu said. "If the United States persists with these measures, we will correspondingly take action to protect our interests." So far,
China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing most of its imports of American products. Crude oil and large aircraft are key U.S.
goods that are still not targeted for penalties.
Following the recent import duty hike, India has been able to bring down its vegetable oil imports by about 27 per cent in July against the same month last year. The
trade also attributed the fall in imports to other factors such as the depreciating rupee and the credit crunch scenario in the country. However, since May 2018, India’s
vegoil imports have declined steadily. Data compiled by the Solvent Extractors’ Association of India (SEA) put total vegetable oil imports at 11,19,538 tonnes for July as
compared to 15,24,724 tonnes reported in the same month last year. This is a 27 per cent dip — the sharpest decline in any month since November 2017. The data
revealed that vegoil imports in May declined by 7 per cent from the same month last year, while the decline was a steep 23 per cent in June 2018 vis-a-vis the same
month last year. According to the SEA, over the last year, prices of edible oils in the international market have gone down by about 14 per cent due to excess supplies in
the world market and reduced demand from India. Most vegoils witnessed decline in prices to the tune of about $100 per tonne. RBD Palmolein prices fell from $683 per
tonne CIF Indian port to $592. Crude Palm Oil prices too fell from $681 a tonne to $583.
Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 13
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