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

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

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

FLASH: Gold Off, USD Firm, Crude Oil Up, Stocks Off

Notes: The International Monetary Fund (IMF) Wednesday said the dollar was overvalued by 6% to 12%, based on near-term economic fundamentals.

With the 1st US interest rate reduction in 10 yrs expected later this month, 2 Fed policymakers sketched out arguments Tuesday on how deep the cut should be, even as a 3rd said she needs more data before being ready to sign on at all.

Markets have fully priced in a 25-bpts cut by the FOMC at its meeting at the end of this month.

Investors cut Bearish bets on most Asian units and went Long on the Indonesian Rupiah for the 1st time in nearly 3 months, as hopes of the Fed paring interest rates weakened prospects for the Buck.

In Asia

Gold: Precious metals were in demand, with gold prices hitting their highest in 2 weeks Thursday, then pulling back, as weaker-than-expected US data reinforced expectations for an interest rate cut by the Fed later this month, pushing the Buck lower.

  • Spot gold -0.3% at $1,422.40 0z, as of 0546 GMT,  ,
  • Silver climbed 1.0% to 16.12 oz, extending gains for a 4th session running,
  • US gold futures edged 0.1% lower to $1,421.90 oz,
  • Gold approached Key resistance around $1,430, and having failed to push through it, it looks like short-term trading investors are taking profits in here.

Energy: Crude Oil prices steadied Thursday after falling in the previous session when official data showed US stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season.

  • ICE Brent Crude Oil futures +0.3% to $63.86 bbl,
  • NASDAQ WTI Crude Oil futures + 0.1% to $56.84 bbl.

Equities: Asian shares edged lower Thursday as Wall Street stocks dropped on early signs that the US-China trade dispute could hurt corporate earnings, which helped underpin solid demand for safe-haven US Treasuries.

MSCI’s broadest index of Asia-Pacific shares sans Japan eased 0.2%, while Japan’s benchmark Nikkei shed 1.7% and Australian shares fell 0.3%.

Chinese shares followed the suit, with the benchmark Shanghai Composite and the blue-chip CSI 300 down 0.7% and 0.6%, respectively, while Hong Kong’s Hang Seng retreated 0.5%.

SKorea’s market was off 0.4% after the Bank of Korea unexpectedly cut its policy interest rate for the 1st time in 3 years, as uncertainties from a trade dispute with Japan added to anxiety about the economy’s outlook.

On Wall Street: all 3 major indexes fell Wednesday as weak results from trade-related CSX Corp (NYSE:CSX) fueled concerns that the protracted trade standoff between the United States and China could hurt US corporate earnings.

Currencies: .DXY Vs a basket of 6 peer currencies little changed at 97.099. EUR flat at $1.1238 after moving up marginally 0.1% Wednesday. The Buck fell 0.2% to 107.72 JPY, extending an overnight loss of 0.3%. GBP was steady at $1.2437, after falling to $1.2382 overnight, its lowest mark since April 2017 on concerns of a no-deal BREXIT.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »56.69 USD-0.09-0.16%Jul 191:54AM EDT
ICE Brent Crude »63.72 USD+0.06+0.09%Jul 191:55AM EDT
NYMEX RBOB Gasoline »1.88 USD+0.00+0.03%Jul 191:55AM EDT
Dubai Crude Spot »62.11 USD+0.16+0.26%Dec 022:04AM EDT
ICE Gas Oil »581.25 USD-1.75-0.30%Aug 191:50AM EDT
NYMEX No2 Heating Oil »1.90 USD+0.01+0.35%Jul 191:53AM EDT
NYMEX Nat Gas »2.31 USD+0.01+0.39%Jul 191:55AM EDT
ICE NBP Nat Gas »30.04 GBP+0.000.00%Jul 1911:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,423.49USD-3.11-0.22%Dec 022:09AM EDT
COMEX 100oz Gold »1,422.30USD+1.00+0.07%Jul 1912:05AM EDT
Silver Spot »16.08USD+0.11+0.71%Dec 022:09AM EDT
Platinum Spot »850.27USD+7.27+0.85%Dec 022:09AM EDT
Palladium Spot »1,542.49USD+4.99+0.32%Dec 022:08AM EDT
COMEX Copper »2.71USD+0.000.00%Jul 197:01PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »434.00USC-2.00-0.46%Sep 191:59AM EDT
CBOT Wheat »504.00USC-1.50-0.30%Sep 191:57AM EDT
KCBT Wheat »440.50USC-1.25-0.28%Sep 191:59AM 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 »882.50USC+0.000.00%Aug 191:57AM 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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