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| As on May 08, 2024 12:00 AM |
Your results on : Mid Session |
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| COMEX Copper corrected heavily today as a rally towards two year high seems to have turned around. Hefty drop was seen in the metal today despite mixed cues from equities. COMEX Copper futures are trading at $4.53 per pound, down 1.45% on the day. Copper started on a dull note in Asia as Asian stocks eased on corrective selling. China?s Shanghai Composite index fell 0.61%. Japanese Nikkei index lost 1.60%. Hong Kong?s Hang Seng index eased 0.90%. European stocks saw good gains though. German DAX rose 0.52% while French CAC has soared 1%. UK?s FTSE100 index gained 0.51%. In overnight trades, the US stocks continued to stay supported. Dow closed higher for the fifth consecutive session, reaching its best closing level in a month. Powered by Commodity Insights |
| According to the latest data from the Gujarat Agriculture Directorate, the latest sowing data showed that the total acreage under summer crops stood at 11.49 lakh hectares as on 6 May 2024, down 0.60% compared to the same period last year. Area under total cereals stood at 4.18 lakh hectares, up 3.60% on year. Pulses area was up 0.30% at 0.67 lakh hectares. Oilseeds area dropped marginally to 1.75 lakh hectares. However, acreage under Groundnut soared by 12.46% to 0.60 lakh hectares. Powered by Commodity Insights |
| Germany's industrial production dropped for the first time in three months in March amid decreases in consumer and intermediate goods output, official data revealed Wednesday. Industrial production declined 0.4 percent on a monthly basis, in contrast to the 1.7 percent increase in February, Destatis reported. However, in the first quarter, industrial output was 1.0 percent higher than in the previous three months. Capital goods output edged up 0.1 percent. Meanwhile, consumer goods output fell 1.4 percent and intermediate goods production dropped 0.6 percent. The annual decline in industrial production eased to 3.3 percent in March from 5.3 percent in the previous month. Powered by Commodity Insights |
According to Geeta Gopinathan, first Deputy Managing Director of International Monetary Fund (IMF), looking at global FX reserves, the most notable development during 2022-23 has been an increase of gold purchases by central banks. Gold is generally viewed as politically neutral safe asset, which can be stored at home and be insulated from sanctions or seizure. It can also be an inflation hedge but cannot be easily used in transactions. She noted that the share of gold in the FX reserves of the China bloc has been rising since 2015—a trend not exclusively driven by China and Russia. Importantly, during the same period, the share of gold in FX reserves of countries in the U.S. bloc has been broadly stable. This suggests that gold purchases by some central banks may have been driven by concerns about sanctions risk. This is consistent with a recent IMF study confirming that FX reserve managers tend to increase gold holdings to hedge against economic uncertainty and geopolitical including sanctions risk. Looking at China, the share of gold in total FX reserves has increased from less than 2 percent in 2015 to 4.3 percent in 2023. During the same period, the value of China’s holdings of U.S. Treasury and Agency bonds relative to FX reserves has declined from 44 percent to about 30 percent. This reflects both net purchases and valuation effects. Powered by Commodity Insights |
| WTI Crude oil futures stayed weak today, adding to losses under $80 per barrel as market focused its attention on the weekly US crude oil inventories data. WTI crude oil futures are quoting at $77.59 per barrel, down 1% on the day and testing seven week low. Oil is also eyeing Hamas ceasefire proposal acceptance. Meanwhile, the U.S. Energy Information Administration reported an inventory increase of 7.3 million barrels for the week to April 26, last week?s data showed. In gasoline, the authority reported an inventory rise of 300,000 barrels for last week, which compared with a modest draw of 600,000 barrels for the week before. Gasoline production averaged 9.4 million barrels daily in the week to April 26, which compared with 9.1 million barrels daily during the previous week. Powered by Commodity Insights |
According to Geeta Gopinathan, first Deputy Managing Director of International Monetary Fund (IMF), global economic ties are changing in ways we have not seen since the end of the Cold War. After years of shocks—including the COVID-19 pandemic and Russia’s invasion of Ukraine—countries are reevaluating their trading partners based on economic and national security concerns. Foreign direct investment flows are also being re-directed along geopolitical lines. Some countries are reevaluating their heavy reliance on the dollar in their international transactions and reserve holdings. Given the recent history of events, policymakers are increasingly—and justifiably—focused on building economic resilience. But if the trend continues, we could see a broad retreat from global rules of engagement and, with it, a significant reversal of the gains from economic integration. She opined that there are not yet clear signs of deglobalization at the aggregate level. Since around the time of the global financial crisis, when the 1990s-early 2000s hyper-globalization came to an end, the ratio of goods trade to GDP has been roughly stable—fluctuating between 41 and 48 percent. But under the surface, there are increasing signs of fragmentation. Trade and investment flows are being redirected along geopolitical lines. China’s share in U.S. imports declined by 8 percentage points between 2017 and 2023 following a flare-up in trade tensions. During the same period, the U.S. share in China’s exports dropped by about 4 percentage points. And direct trade between Russia and the West collapsed following the invasion of Ukraine and subsequent sanctions on Russia. Gopinathan stated that while rebuilding trust is difficult and may take time, it is critical to avoid the worst outcomes in a rapidly fragmenting world. It is well worth it to preserve some of the enormous gains from economic integration that have made the world more prosperous and more secure. Powered by Commodity Insights |
| According to United States Geological Survey, domestic US primary aluminum production in February 2024 was 52,000 metric tons (t). The average daily production in February 2024 was 1,790 t, 11% less than that in January 2024, 15% less than that in February 2023, and 33% less than that in February 2022. Total aluminum recovered from scrap in February 2024 was 293,000 t, 6% more than the revised amount in January 2024, 4% more than the amount in February 2023, and 3% more than that in February 2022. Powered by Commodity Insights |
| Silver futures are witnessing sideways movement. The metal hit a one week high of $27.80 per ounce in last session before easing and currently trades at $27.62 per pound, up 0.26% on the day. Silver futures drifted lower to test one month low near $26 per ounce last week before witnessing a modest recovery. Prices have eased considerably over last few weeks after hitting a three year high of $30 per ounce in mid-April 2024. The red metal may find it difficult to see sustained gains as Copper prices are falling from their one year high now. Broad focus on geopolitical scenario and trends in equities will also shape up the narrative for Silver. MCX Silver futures are currently trading at Rs 82870 per kg, almost unchanged on the day. Powered by Commodity Insights |
| The British construction sector advanced at the quickest pace in more than a year in April, largely due to solid rates of growth in the commercial and civil engineering segments, survey results from S&P Global showed on Tuesday. The Construction Purchasing Managers' Index, or PMI, rose to 53.0 in April from 50.2 in March. A reading above 50 suggests expansion in the sector. Among the three main categories, commercial building activity logged the fastest-growing segment, which grew for the first time in fourteen months on the back of rising workloads and a turnaround in customer demand. The civil engineering segment advanced at the strongest pace in nine months, while house building activity declined due to sluggish market conditions and the impact of elevated borrowing costs. New orders grew for the third successive month in April, though the rate of decline has eased slightly since March. Construction companies also reduced workforce numbers, linked to the non-replacement of voluntary leavers due to cost pressures and the completion of major projects. Meanwhile, supplier performance has improved at the fastest pace since December last year. On the price front, input price inflation was only modest and well below the long-run survey average. Powered by Commodity Insights |
| UK house prices edged up slightly in April as rising interest rate expectations weighed on the property market, data published by the mortgage lender Halifax showed on Tuesday. House prices saw a monthly increase of 0.1 percent in April following 0.9 percent fall in March. Powered by Commodity Insights |
| In March 2024, compared with February 2024, the seasonally adjusted retail trade volume increased by 0.8% in the euro area and by 1.2% in the EU, according to first estimates from Eurostat, the statistical office of the European Union. In February 2024, retail trade volume fell by 0.3% in the euro area and by 0.1% in the EU. In March 2024 compared with March 2023, the calendar adjusted retail sales index increased by 0.7% the euro area and by 2.0% in the EU. Powered by Commodity Insights |
| WTI Crude oil futures are lingering just under $79 per barrel, recording mild gains amid firm cues from global equities today. Prices are consolidating after testing around six week low with the near term focus shifting on the Hamas-Israel conflict and demand in the US ahead of summer driving season. Meanwhile, the energy speculators increased their net long positions in the crude oil futures markets very marginally, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Crude oil futures, traded by large speculators, hedge funds and retailers, totaled a net long position of 265461 contracts in the data reported through April 30, 2024. This was a weekly rise of 625 net contracts. Powered by Commodity Insights |
| Gold futures saw a good bounce in last session as bargain buying stayed in place following recent losses. The COMEX Gold futures spiked around 1%, adding to gains after testing one month low in last week. The metal currently trades at $2327 per ounce, down 0.16% on the day as Hamas accepting Egyptian-Qatari cease-fire proposal is capping upmove in the commodity. MCX Gold futures spiked 0.98% in last session with a massive 28% drop in volume. The counter currently trades at Rs 71240 per 10 grams, down 0.18% on the day. Gold demand from China remains steadfast. According to the China Gold Association, gold consumption in the country saw a 6% spurt in the first quarter compared to the same period last year. This growth follows a 9% spike recorded in the year 2023. Powered by Commodity Insights |
| Germany's factory orders posted an unexpected fall in March due the decrease in domestic demand, data from Destatis revealed on Tuesday. Factory orders decreased 0.4 percent on a monthly basis, confounding expectations for an increase of 0.4 percent. Nonetheless, the pace of decrease slowed from the revised 0.8 percent drop logged in February. The statistical office revised the February's rate of change from +0.2 percent. New orders for capital goods and intermediate goods were down 0.4 percent each. Meanwhile, the consumer goods sector reported an increase of 0.7 percent. Foreign orders grew 2.0 percent driven by the 10.6 percent surge in demand from the euro area. By contrast, orders from the non-euro area dropped 2.9 percent. At the same time, domestic orders declined 3.6 percent from the prior month. On a yearly basis, the decline in factory orders slowed to 1.9 percent from 8.8 percent in the previous month. Further, data showed that real manufacturing turnover fell 0.7 percent month-on-month, following a 1.1 percent increase in February. Powered by Commodity Insights |
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