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

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

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

FLASH: Gold Up, USD Flat, Crude Oil Down, Stocks Down

Notes: A US trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on 28-29 March which will be followed by a trip by Chinese Vice Premier Liu He to Washington in early April.

Concerns about a potential US recession resurfaced late last week after bearish remarks by the Fed, with 10-year Treasury yields slipping below the 3-month rate for the 1st time since Y 2007.

Historically, an inverted yield curve where long-term rates fall below short-term has signaled an upcoming recession. We do not believe that is the case here.

Adding to the fears of a more widespread global downturn, manufacturing output data from Germany, Europe’s biggest economy, shrunk for the 3rd month running. Estimates for growth and earnings have been revised down materially across all major EU regions.

Chicago Federal Reserve Bank President Charles Evans said Monday that it is a good time for the Fed to pause and adopt a cautious stance, adding that he did not expect any interest rate hikes until 2-H of Y 2020.

In Asia

Gold: Gold rose Monday as investors’ appetite for riskier assets faded on concerns about a potential USS recession and decelerating global growth, increasing appeal for the precious Yellow metal alongside JPY and bonds.

  • Spot gold was up 0.2% at $1,316.11 oz as of 0422 GMT,
  • US gold futures up 0.3% to $1,315.80 oz.

The metal last week posted its third consecutive weekly gainers and rose 1%, the most since the week ended 1 February 2019.

My work indicates that Gold is set to make another run for $1,350 +

Investors sold shares and bought bonds, while the Japanese Yen holds near a 6-week high.

Market is in a risk aversion mode. It seems that the data from Friday night, of US and Europe, did not come in as expected.

Energy: Crude Oil prices off by almost 1% Monday, with concerns recession could be looming outweighing supply disruptions from OPEC’s production cutbacks and from US sanctions on Iran and Venezuela.

  • ICE Brent Crude Oil futures were at $66.56 bbl at 0410 GMT, -47c, or 0.7% from Friday’s London close
  • WTI) futures were at $58.52 per barrel, down 52 cents, or 0.9 percent, from Friday’s NY close.

Both Crude Oil price benchmarks have fallen by more than 3% since last week hitting their highest marks since November 2018.

Equities: The Mood is Gloomy Monday in Asia and is expected to spread across Europe and US markets later in the day.

Spreadbetters showed, with London’s FTSE futures off 0.3% and E-minis for the S&P 500 down 0.5%.

MSCI’s broadest index of Asia-Pacific shares sans Japan dropped 1.5% to a 1-week low in a broad equities sell-off in the region.

Japan’s Nikkei hit a 5 week low after diving 3.1% for its largest 1-day percentage fall since late December 2018. SKorea’s Kospi index declined 1.7% while Australian shares fell 1.1%.

Chinese shares was also in the Red with the blue-chip CSI 300 index down 1.4%.

Currencies: .DXY little changed at 96.623 after gainer of 0.15% Friday.

GBP was 0.1% lower at $1.3197 after 3 straight days of wild action. The currency slipped 0.7% last week.

Safe-haven JPY held near its highest since 11 February, last barely changed at 109.9 per USD.

The Australian Dollar, a liquid proxy for risk player, was flat at $0.7082 after 2 straight sessions of losses

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »58.58 USD-0.46-0.79%Apr 1912:24AM EDT
ICE Brent Crude »66.65 USD-0.38-0.57%Mar 198:00PM EDT
NYMEX RBOB Gasoline »1.92 USD-0.01-0.49%Mar 1911:37PM EDT
Dubai Crude Spot »66.43 USD-0.49-0.74%Dec 0212:33AM EDT
ICE Gas Oil »601.75 USD+4.50+0.75%Apr 198:00PM EDT
NYMEX No2 Heating Oil »1.95 USD-0.01-0.74%Mar 1910:58PM EDT
NYMEX Nat Gas »2.73 USD-0.03-0.95%Mar 1912:25AM EDT
ICE NBP Nat Gas »36.25 GBP+0.000.00%Mar 198:00PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,315.29USD+2.16+0.16%Dec 028:00PM EDT
COMEX 100oz Gold »1,311.60USD+0.000.00%Mar 197:01PM EDT
Silver Spot »15.45USD+0.03+0.21%Dec 028:00PM EDT
Platinum Spot »847.08USD+3.08+0.36%Dec 028:00PM EDT
Palladium Spot »1,561.51USD-2.49-0.16%Dec 028:00PM EDT
COMEX Copper »2.84USD-0.00-0.04%Mar 198:27PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »379.25USC+1.00+0.26%May 192:32AM EDT
CBOT Wheat »465.25USC-0.75-0.16%May 192:33AM EDT
KCBT Wheat »443.75USC-1.25-0.28%May 192:32AM EDT
MGE Spring Wheat »573.00USC+0.75+0.13%May 192:33AM EDT
Euronext Milling Wheat »189.50EUR+0.000.00%May 198:00PM EDT
CBOT Soybean»905.25USC+1.50+0.17%May 192:33AM 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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