Monday, 06 April 2015 09:22

Global Market Updates

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Currency Market:

>INR closed high as RBI keeps interest rate unchanged. The currency touched 9 month low yesterday due to removal of gold import restrictions. Yesterday Government auctioned debt quota for FII that appreciated rupee. RBI is likely to cut interest rate in next meet in Feb after looking at inflationary pressure and deficit control. The Central Bank has set growth rate of 5.5% for this quarter and has set inflation target of 8% for 2015 and 6% for 2016.

>Yen falls to seven year low against dollar as rating agency Moodys downgraded sovereign bond rating by one notch to A1. The currency fell to 119.0 after opening on 118.39. Yen has been falling since the surprising change in BOJ stimulus and then after postponed sales tax hike by Prime Minister Abe following weak GDP data.

>Euro weakened against dollar by 0.18% to 1.2447. No change in Euro Manufacturing PMI on Monday and five year low inflation reading of 0.3% on last week depreciated Euro against dollar. Traders seem bearish on Euro before ECB meeting on 4th Dec. Spanish Manufacturing PMI and Unemployment has improved while Italian Manufacturing PMI has continued contraction for last month.

>GBP gained yesterday on better than expected Manufacturing PMI but todays fall in Construction PMI by 2 points to 59.4 erased earlier gains. The currency pair GBP/USD fell by 0.24% to 1.5695 at international market.

>AUD falls as RBA keeps interest rate unchanged at record low level at 2.5%. The currency gained to 0.8543 after the rate announcement but retreated later. Building approval reported unexpected hike of 11.4% against last -11.2%. Trade deficit also narrowed to $12.5b from last $13.9b.

Commodity Market:

>WTI Crude oil prices remain below $70 as abundant supply remains continue. Both Brent and WTI touched five year low yesterday due to huge fresh supply of light weight oil from North America. WTI trades near to $67.92 a dollar. Market is expecting crude oil to trade at sustainable range like $70-$80 a barrel.

>Gold prices fell below $1200 after the precious metal rally to $1218 an ounce on speculative buying. Little gain in oil prices and weakness in dollar index spurred gold buying at international market yesterday. Silver prices also fell by 0.52% to $16.16 an ounce.

>Copper prices fell yesterday as China Manufacturing PMI fell by 0.5 points to 50.3 in November. HSBC Final Manufacturing PMI also reported weakness in manufacturing industry as the index remained unchanged at level 50.0. Below 50 the industry may fall in contraction. Copper for March delivery fell to four and half year low at $2.765 a pound yesterday and recovered to $2.86. Today the metal traded within the range of $2.85 to $2.91. Weakness in copper prices may continue as industrial demand at China, worlds largest metal consumer is declining and global growth is waning.

 

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