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

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

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

FLASH: Gold Dipped, USD Up, Crude Oil Off, Stocks Lower

Headlines

  • USD up as lengthy Fed easing uncertain and BREXIT pains deepens.
  • Crude Oil slips 1% after Fed disappoints, US Crude Oil output rises.
  • Gold dipped to 2-wk lows on Fed uncertainty about more rate cuts.
  • Asian shares fall, USD firms

Gold: Gold prices dropped to 2-wk lows Thursday after the Fed cut rates by 25 bpts as expected but tampered market expectations of a lengthy easing cycle.

  • Spot gold was – 0.2% at $1,410.42 oz, as of 0259 GMT,
  • US gold futures off 1.2% to $1,421 oz.

Adopting the rate cuts the way the Fed couched it is more like an insurance policy rather than a commencement of series of rate cuts, that created some uncertainty.

As expected by markets, FOMC moved the benchmark overnight lending rate to a target range of 2.00% to 2.25%, citing concerns about the global economy and muted US inflation.

Energy: The world is awash with Crude Oil, and US output is growing strongly and in addition to that there is enough spare capacity in Saudi Arabia alone to offset any significant supply disruptions.

  • ICE Brent Crude Oil futures – 62c, or 1%, to $64.43 bbl by 0405 GMT,
  • NYMEX WTI Crude Oil – 67c, or 1.2%, at $57.91 bbl.

The fall came despite a bigger-than-expected decline in inventories in the US and a drop in production among OPEC members, along with Libya cutting exports, typically Bullish drivers for the market. But US output rose in a market that remains well supplied.

Equities: Asian shares fell to 6-wk lows Thursday.

MSCI’s broadest index of Asia-Pacific shares sans Japan faltered 0.4%, extending losses for a 5th day running to the lowest since mid-June.

Japan’s Nikkei reversed early losses and were a shade higher, while Australian shares declined 0.1%. Chinese shares opened in the Red with the blue-chip index down 0.3%.

E-minis for the S&P 500 took back early losses and were higher, after a sharp drop on Wall Street.

Currencies: USD at a 2-year high Vs EUR and a 2 month high Vs the JPY Thursday as Fed Chairman Powell was unclear about a lengthy easing cycle after delivering the 1st rate cut since the Y 2008 financial crisis.

.DXY Vs a basket of 6 peer currencies rose 0.3% to 2-year highs at 98.932.

Onshore RMB Yuan CNY opened at 6.9150 per USD, the weakest level since 18 June. .

GBP off Vs USD to the lowest in more than 2 years on the growing risk of a no-deal BREXIT, but the focus will shift to a Bank of England meeting later Thursday.

Commodities (quotes): Metals, Energy, Agriculture Grains

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,409.27USD-4.28-0.30%Dec 021:29AM EDT
COMEX 100oz Gold »1,410.50USD-15.60-1.11%Aug 1911:40PM EDT
Silver Spot »16.17USD-0.09-0.53%Dec 021:29AM EDT
Platinum Spot »859.18USD-0.32-0.04%Dec 021:29AM EDT
Palladium Spot »1,518.43USD+1.93+0.13%Dec 021:29AM EDT
COMEX Copper »2.66USD+0.000.00%Aug 197:01PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »57.87USD-0.71-1.23%Aug 191:21AM EDT
ICE Brent Crude »64.39USD-0.66-1.03%Aug 191:21AM EDT
NYMEX RBOB Gasoline »1.84USD-0.02-1.07%Aug 191:17AM EDT
Dubai Crude Spot »63.20USD+0.13+0.21%Dec 021:30AM EDT
ICE Gas Oil »598.00USD-3.75-0.63%Aug 191:10AM EDT
NYMEX No2 Heating Oil »1.95USD-0.02-0.86%Aug 191:15AM EDT
NYMEX Nat Gas »2.23USD+0.00+0.04%Aug 191:21AM EDT
ICE NBP Nat Gas »29.76GBP+0.000.00%Aug 1911:55AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »402.50USC+2.25+0.56%Sep 191:20AM EDT
CBOT Wheat »485.25USC-2.00-0.41%Sep 191:20AM EDT
KCBT Wheat »422.50USC-0.25-0.06%Sep 191:20AM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »174.75EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »862.75USC-1.25-0.14%Aug 1912:31AM 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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