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

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

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

FLASH: Gold Down, USD Flat Crude Oil Off, Stocks Lower

Notes: BoE Governor Mark Carney has said a global trade war and a no-deal BREXIT were growing risks to Britain’s economy, which might need more help to cope with a downturn. That prompted investors to increase their bets on a BoE interest rate cut.

The Chinese stock market fell Tuesday, tracking overnight weakness on Wall Street after strong US jobs data dimmed hopes of a deep rate cut by the Fed, while tech shares dragged ahead of a slew of new listings on a Nasdaq-style board in Shanghai.

In Asia

Gold: Gold prices lower Tuesday as USD held near multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal’s losses.

  • Spot gold was down 0.2% at $1,392.64 oz as of 0608 GMT,
  • US gold futures fell 0.3% to $1,396.30 oz.

Weakness in gold prices is largely due to easing of Fed rate cut expectations and bond yields are recovering. Markets continue to price in a 25 bpt cut.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes Friday.

Energy: Crude Oil prices dipped Tuesday on demand concerns following the latest signs the US-China trade dispute is dragging on the global economy, although the potential for conflicts in the Middle East offered support

  • ICE Brent Crude futures were down 14c, or 0.2%, at $63.97 bbl by 0524 GMT,
  • NYMEX Crude Oil futures were down 20c, or 0.4%, at $57.46 bbl.

Crude Oil prices are being pressured by worries about demand as the U.S.-China trade dispute, heading into its 2nd year, dampens prospects for global economic growth, which affects demand. The countries are the world’s 2 largest Crude Oil consumers.

Equities: The Chinese stock market slid Tuesday, tracking overnight weakness on Wall Street after strong US jobs data dimmed hopes of a deep rate cut by the Fed, while tech shares dragged ahead of lots of new listings on a NASDAQ-style board in Shanghai.

MSCI’s broadest index of Asia-Pacific shares sans Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan’s Nikkei rose 0.5%

On Wall Street Monday, the S&P 500 lost 0.48%, and the NAS Comp dropped 0.78%

Money market futures are still fully pricing in a 25 bpt cut at the Fed’s next policy meeting on 30-31 July, but have almost priced out a larger 50 bpt reduction.

Currencies: USD traded near a 3-week highs Vs its peers Tuesday, as investors pared bets on aggressive US interest rate cuts ahead of the Fed Chairman’s testimony to Congress on the economy Wednesday.

.DXY Vs a basket of 6 peer currencies was little changed at 97.366 Tuesday, which was close to a 3 week high of 97.443 hit Friday.

The Buck briefly rose to a 6-week high of 108.90 JPY Tuesday before settling at 108.68 JPY, flat to little changed on the day.

GBP was last quoted at $1.2515, within striking distance of $1.2481, its lowest since the “flash crash” on 3 January when it dropped to $1.2409.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »57.43 USD-0.23-0.40%Jul 192:37AM EDT
ICE Brent Crude »63.94 USD-0.17-0.27%Jul 192:37AM EDT
NYMEX RBOB Gasoline »1.90 USD-0.00-0.15%Jul 192:36AM EDT
Dubai Crude Spot »62.48 USD+0.03+0.05%Dec 022:47AM EDT
ICE Gas Oil »574.75 USD-4.50-0.78%Jul 192:36AM EDT
NYMEX No2 Heating Oil »1.89 USD-0.00-0.22%Jul 192:37AM EDT
NYMEX Nat Gas »2.39 USD-0.01-0.42%Jul 192:36AM EDT
ICE NBP Nat Gas »32.45 GBP+1.04+3.20%Jul 192:36AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,394.15USD-1.05-0.08%Dec 022:49AM EDT
COMEX 100oz Gold »1,392.90USD-4.10-0.29%Jul 192:13AM EDT
Silver Spot »15.07USD+0.04+0.29%Dec 022:49AM EDT
Platinum Spot »812.24USD-1.25-0.15%Dec 022:49AM EDT
Palladium Spot »1,557.10USD-4.40-0.28%Dec 022:49AM EDT
COMEX Copper »2.65USD-0.01-0.34%Jul 1912:23AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »436.00USC-2.50-0.57%Jul 1910:10PM EDT
CBOT Wheat »512.00USC-4.75-0.93%Jul 192:09AM EDT
KCBT Wheat »442.00USC+0.000.00%Jul 195:22PM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »176.75EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »875.25USC+0.000.00%Jul 195:26PM EDT

Stay tuned..

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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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