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

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


FLASH: Gold Up, USD Dowu, Crude Oil Up, Stocks Up

Notes: The Fed held interest rates steady, shave the number of hikes projected for the rest of the year at none and release details of a plan to end the monthly reduction of its massive balance sheet in September.

US Crude Oil stockpiles last week fell by nearly 10-M bbl, the most since July, boosted by strong export and refining demand, the Energy Information Administration said Wednesday. 

In Asia

Gold: Gold climbed to 3-week highs Thursday as the Fed ruled out chances of any interest rate hike this year, and forecast a cut in US GDP added to concerns on global economic slowdown.

  • Spot gold gained 0.5% to $1,318.46 oz as of 0509 GMT,
  • US gold futures rose 1.3% to $1,318.30 oz.

Palladium marked an all-time high at $1,619.81/oz on prolonged supply deficit in the market.

We here at HeffX are optimistic on gold’s safe-haven appeal as global economic indicators have pointed towards flagging global growth prospects and heightened geopolitical risks in the current term.

Energy: Crude Oil prices reached their highest so far in Y 2019 Thursday as global markets tightened amid supply cuts led by OPEC and US government sanctions against Iran and Venezuela.

  • ICE Brent Crude Oil futures marked $68.64 bbl around at 0453 GMT on Thursday, +14c, or 0.2% from Wednesday’s close,
  • NYMEX WTI Crude Oil futures marked $60.27 bbl Thursday.

Crude prices have been pushed up by almost 33% YTD by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), and by sanctions enacted against Iran and Venezuela by the United States.

Equities: Shares in Asia rose Thursday after the Fed took a more dovish stance at its policy meeting, but concerns over US-China trade talks and slowing global growth capped broad gains and pushed some markets lower.

MSCI’s broadest index of Asia-Pacific shares sans Japan was up 0.5%.

Chinese blue-chips, which spent the morning swinging between small losses and gainers, were flat, while Seoul’s Kospi added 1% as regulators announced plans to cut the stock transaction tax this year. Markets in Japan are closed on Thursday for a public holiday.

Australian shares, which had risen earlier in the session, turned lower, dropping 0.5%

Gains in the broad Asian index followed a volatile session on Wall Street Wednesday, after a move toward risk taking sparked by the Fed’s Dovish shift was overtaken by growth and trade concerns.

The DJIA fell 0.55% to 25,745.67, the S&P 500 lost 0.29% to 2,824.23 and the NAS Comp added less than 0.1 percent to 7,728.97.

Currencies: The USD saw losses in Asia Thursday after the Fed abandoned all plans to raise rates this year, a signal its 3-year campaign to normalize policy might be at an end.

The FOMC move pushed USD to 110.47 JPY, with its 0.6% loss overnight the biggest drop since the flash crash of early January.

EUR drove to a 7-week high and was last trading at $1.1424, way away from its recent low of $1.1177.

That left the USD down at 95.908 Vs a basket of peer currencies, having lost 0.5% overnight. It is poised on its 200-Day MA, and a sustained break will be taken as overall Bearish.

Another currency with problems is Pound Sterling, which retreated to $1.3205 after UK PM Theresa May’s request to delay BREXIT until 30 June faced resistance from the EU.

Faring better was the New Zealand Dollar (Kiwi) as data on domestic economic growth came in firmer than many Bearish investors had expected.

The Australian Dollar (Aussie) got a boost when data showed the jobless rate falling to an 8-year low of 4.9 percent, heaving the currency up to $0.7147.

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

NYMEX Crude Oil »60.27 USD+0.04+0.07%Apr 191:21AM EDT
ICE Brent Crude »68.65 USD+0.15+0.22%Mar 198:00PM EDT
NYMEX RBOB Gasoline »1.92 USD-0.00-0.08%Mar 191:16AM EDT
Dubai Crude Spot »68.40 USD+0.10+0.15%Dec 021:30AM EDT
ICE Gas Oil »618.50 USD+0.000.00%Apr 198:00PM EDT
NYMEX No2 Heating Oil »2.01 USD+0.00+0.07%Mar 191:00AM EDT
NYMEX Nat Gas »2.83 USD+0.00+0.18%Mar 191:20AM EDT
ICE NBP Nat Gas »38.07 GBP+0.000.00%Mar 198:00PM EDT
Gold Spot »1,318.14USD+5.91+0.45%Dec 028:00PM EDT
COMEX 100oz Gold »1,300.50USD+0.000.00%Mar 197:01PM EDT
Silver Spot »15.56USD+0.11+0.71%Dec 028:00PM EDT
Platinum Spot »864.25USD+5.25+0.61%Dec 028:00PM EDT
Palladium Spot »1,616.50USD+13.00+0.80%Dec 028:00PM EDT
COMEX Copper »2.95USD+0.03+1.09%Mar 1911:05PM EDT
CBOT Corn »371.25USC-0.25-0.07%May 191:22AM EDT
CBOT Wheat »462.75USC-2.00-0.43%May 191:25AM EDT
KCBT Wheat »443.50USC-0.50-0.11%May 191:02AM EDT
MGE Spring Wheat »569.50USC-2.00-0.35%May 191:02AM EDT
Euronext Milling Wheat »189.00EUR+0.000.00%May 198:00PM EDT
CBOT Soybean »906.25USC+0.25+0.03%May 191:28AM 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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