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

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

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

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

Headlines

  • Asia stocks hit 6-month low as investors flee to safety
  • Futures are now pricing in deeper interest rate cuts than before last week’s Fed meeting. The terminal US rate is seen at 1.22%, 93 bpts below the current effective rate.
  • Crude Oil prices drop as US-China trade dispute fuels growth concerns.
  • Gold climbs to 6-year highs as trade, growth concerns spur demand

Gold: Gold prices spiked 1% to their highest marks in more than 6 years Monday, as the escalating trade dispute between the United States and China along with global growth worries drove investors to safe-haven assets.

  • Spot gold was up 0.9% at $1,452.99 oz, as of 0540 GMT,
  • US gold futures rose 0.5% to $1,465 oz.

Gold is benefiting from the global concerns about the outlook for growth, and central banks are likely to maintain their accommodative stance, so safe-haven gold is in demand.

Energy: Crude Oil prices fell Monday amid renewed global economic growth concerns after President Trump vowed to escalate the trade dispute with China with more tariffs, which would likely limit fuel demand in the world’s 2 biggest consumers.

  • ICE Brent Crude Oil futures -73c, or 1.2%, to $61.16 bbl by 0458 GMT,
  • NYMEX WTI Crude Oil futures -62c, or 1.1%, to $55.04 bbl.

Both crude benchmarks fell last week, with Brent dropping 2.5% and WTI falling 1%.

Speculators cut Bullish bets on US crude in the week to 30 July, while Bearish Bets rose to their highest since February, the US Commodity Futures Trading Commission (CFTC) said Friday

Equities: Asian shares suffered their steepest daily fall in 9 months Monday, as US-China trade friction pushed the RMB Yuan to a 10 yrs low and drove investors into safe harbors including JPY, bonds and gold.

Asian share markets were a sea of Red with Japan’s Nikkei .N225 shedding 2.3% to the lowest since early June. It was the sharpest daily drop since March and led Japanese officials to call a special meeting to discuss market turmoil.

Australian shares dove 1.5% to spend their 4th session running in the Red, and SKorea’s KOSPI -2.1% to hit its lowest since December 2016.

MSCI’s broadest index of Asia-Pacific shares sans Japan sank 2.2% to depths not seen since late January.

In China, the blue-chip index .CSI300 fell 1% while the troubled Hong Kong market .HSI hit a 7-month low.

The pain spread, with futures for the S&P500 ESc1, the FTSE FFIc1 and EUROSTOXX STXEc1 all down more than 1%.

Currencies:

The flight to safety lifted JPY, which often gains at times of stress thanks to Japan’s position as the world’s largest creditor. USD slipped to a 7-month low of 105.78 JPY, while the EUR sank to its lowest since April 2017 at 117.64 JPY.

That dragged .DXY off 0.1%, though it was up against most other Asian currencies and those exposed to China or commodities.

The AUD, a liquid proxy for emerging market and China risk, slipped to a fresh 7-month low at $0.6748 after losing 1.6% last week.

The Swiss franc was boosted by safe-haven demand from the escalating trade tensions.

EUR was steady on USD at $1.1125.

GBP hangs near 2017 lows at $1.2150, pressured by concerns about Britain exiting the EU without a deal in place.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,452.79USD+12.33+0.85%Dec 021:39AM EDT
COMEX 100oz Gold »1,452.70USD+7.10+0.49%Aug 191:05AM EDT
Silver Spot »16.48USD+0.27+1.64%Dec 021:39AM EDT
Platinum Spot »851.84USD+9.34+1.10%Dec 021:39AM EDT
Palladium Spot »1,416.07USD+9.57+0.68%Dec 021:39AM EDT
COMEX Copper »2.57USD+0.000.00%Aug 197:01PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »55.11USD-0.55-1.00%Aug 191:32AM EDT
ICE Brent Crude »61.20USD-0.69-1.13%Aug 191:32AM EDT
NYMEX RBOB Gasoline »1.76USD-0.02-1.06%Aug 191:31AM EDT
Dubai Crude Spot »59.91USD-0.46-0.77%Dec 021:42AM EDT
ICE Gas Oil »572.00USD-6.00-1.05%Aug 191:24AM EDT
NYMEX No2 Heating Oil »1.87USD-0.02-1.03%Aug 191:32AM EDT
NYMEX Nat Gas »2.09USD-0.03-1.53%Aug 191:32AM EDT
ICE NBP Nat Gas »32.72GBP+0.000.00%Aug 197:00PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »394.50USC-5.00-1.27%Sep 191:34AM EDT
CBOT Wheat »481.50USC-9.25-1.92%Sep 191:33AM EDT
KCBT Wheat »415.25USC-6.50-1.57%Sep 191:13AM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »173.25EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »844.00USC-6.25-0.74%Aug 1912:09AM EDT

Have a terrific week

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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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