Asia: Gold, USD, Crude Oil, Stocks & Commodities

Asia: Gold, USD, Crude Oil, Stocks & Commodities

$GLD, $SLV, $USD, $USO, $OIL, $WEAT, $CORN, $SOY

FLASH: Gold Up, USD Steady, Crude Oil Down, Stocks Down

Notes: Global stocks will continue their drive North, but an escalation of the US-China trade dispute poses the biggest risk, Reuters polls of over 200 equity strategists, analysts and fund managers from around the world found.

President Trump ramped up trade tensions globally by vowing to slap tariffs on all goods from Mexico on 10 June.

The United States will sanction any country which buys oil from Iran after the expiration of waivers on 2 May, US Special Representative for Iran Brian Hook said Thursday.

A string of soft economic data from the Us this month and the drawn out trade dispute translated into increased market bets that the Fed could cut interest rates this year.

In Asia

Gold: Gold prices rose Friday, heading towards their 1st monthly gainer since January on increased safe-haven demand, after President Trump vowed to levy tariffs on all Mexican imports, ratcheting up concerns of a global economic slowdown.

  • Spot gold +0.2% at $1,290.68 oz at 0322 GMT, + 0.6% this month,
  • US gold futures rose 0.3% to $1,290.50 oz.

Lower interest rates would support gold since it reduces the opportunity cost of holding the non-yielding asset.

Energy: Crude Oil prices fell Friday and were on track for their biggest monthly fall since November as trade conflicts spread and US Crude output returned to record marks.

  • Front-month ICE Brent Crude Oil futures were at $66.28 at 0311 GMT, -59c, or 0.9%, from Thursday’s close,
  • NYMEX WTI Crude Oil futures were at $56.08 bbl, -51c, or 0.9%, from Thursday’s settlement.

The decline means that Crude Oil futures are on track for their biggest monthly loss since last November.

Equities: US stock futures fell and sovereign bonds rose Friday as investors feared President Trump’s shock threat of tariffs on Mexico risked tipping the United States, and maybe the world, into recession.

Markets moved aggressively to price in deeper rate cuts by the Fed this year, while bond yields touched fresh lows and curves inverted further in a warning of recession.

E-Mini futures for the S&P 500 slid 0.8% and FTSE futures 0.4%. Germany’s DAX shed 0.7%.

Asian shares fell at 1st, only to draw month-end bargain hunting having endured a torrid few weeks.

MSCI’s broadest index of Asia-Pacific shares sans Japan edged up 0.3%, though it was still down 7.3% on the month.

China’s blue chip index held steady, partly on talk Beijing would now have to ramp up its stimulus, but again was nursing loses of 6.8% for May.

Japan’s Nikkei fell 1.3%, dragged down by big falls in car makers, which left it off 7.1% for the month.

Currencies: The USD is relatively attractive from a yield point of view and it was trading near a 2-year high Vs a basket of peer currencies at 98.115.

EUR hobbled at $1.1129, having shed 0.7% on the month.

The safe-haven JPY fared better as the USD lost 0.6% on the day to a 3-month low of 108.94.

GBP poised for the biggest monthly decliner in a year as the imminent departure of Theresa May as PM deepened fears about a chaotic BREXIT from the EU.

Commodities (quotes): Energy, Metals, and Agriculture Grains

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »56.10 USD-0.49-0.87%Jun 192:12AM EDT
ICE Brent Crude »66.02 USD-0.85-1.29%May 191:27AM EDT
NYMEX RBOB Gasoline »1.87 USD-0.01-0.43%May 1912:00AM EDT
Dubai Crude Spot »64.07 USD-0.60-0.94%Dec 022:21AM EDT
ICE Gas Oil »588.50 USD-9.50-1.61%Jun 192:11AM EDT
NYMEX No2 Heating Oil »1.90 USD-0.01-0.79%May 198:13PM EDT
NYMEX Nat Gas »2.56 USD+0.01+0.55%Jun 192:11AM EDT
ICE NBP Nat Gas »28.69 GBP+0.000.00%Jun 1911:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,292.69USD+4.19+0.32%Dec 022:20AM EDT
COMEX 100oz Gold »1,292.40USD+5.30+0.41%Jun 192:10AM EDT
Silver Spot »14.51USD-0.01-0.07%Dec 022:18AM EDT
Platinum Spot »791.46USD-0.04-0.00%Dec 022:18AM EDT
Palladium Spot »1,363.50USD-4.00-0.29%Dec 022:18AM EDT
COMEX Copper »2.66USD+0.000.00%Jun 194:53PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »434.25USC-2.00-0.46%Jul 192:15AM EDT
CBOT Wheat »513.50USC-1.00-0.19%Jul 192:15AM EDT
KCBT Wheat »478.50USC-0.50-0.10%Jul 192:10AM EDT
MGE Spring Wheat »563.75USC+0.25+0.04%Jul 192:10AM EDT
Euronext Milling Wheat »185.25EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »885.00USC-4.00-0.45%Jul 192:15AM EDT

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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