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 Off, Stocks Down

Notes: President Trump Sunday increased pressure on China to reach a trade deal, saying he will hike US tariffs on $200-B worth of Chinese goods this Friday, and targets $325-B more soon.

The President’s aggressive strategy drew bi-partisan support from US Senate Democratic leader Chuck Schumer (D:NY), who urged President Trump to “hang tough” in a Tweet: “Don’t back down. Strength is the only way to win with China.”

China wants the tariffs to be lifted, while President Trump wants to keep some, if not all, of them as part of any final deal to ensure China lives up to its commitments, a White House official said Sunday.

China Vice Premier Liu He will travel to the US this week for trade talks South China Morning Post reported Monday

The newspaper said Mr. Liu is now expected to leave Beijing Thursday, 3 days later than previously scheduled, and leave Washington a day later.

In Asia

Gold: Gold rose Monday after President Trump threatened to impose tariffs on Chinese goods prompting a downturn in risk assets.

  • Spot gold rose 0.3% to $1,282.96 oz as of 0121 GMT,
  • US gold futures were + 0.2 percent to $1,283.70 oz.

Gold is used as a safe-haven investment in times of geopolitical or global economic turmoil.

Energy: Crude Oil prices fell 2% Monday after President Trump Sunday said he would sharply hike tariffs on Chinese goods this Friday, putting pressure on China to finalize the long running trade talks and resolve the disputes.

  • NYMEX WTI Crude Oil futures were at $60.44 bbl at 0032 GMT Monday, – $1.50 bbl, or 2.4%, from Friday’s settlement,
  • ICE Brent Crude Oil futures were at $69.34 bbl, -$1.51 bbl, or 2.1%, from Friday’s close.

Within the Oil industry, there are signs of a further rise in output from the United States, where production has already surged by more than 2-M BPD since early Y 2018, to a record 12.3-M BPD making the United States the world’s biggest producer ahead of Russia and Saudi Arabia.

Equities: Global financial markets had been expecting news of a trade deal soon, went into a tailspin on the tariffs hike Tweet. Plus, US equity futures fell more than 2% and stocks across trade-reliant Asia tumbled, with China’s main indexes diving 5%.

MSCI’s broadest index of Asia-Pacific shares sans Japan was down 2% as markets across the region fell deep into the red.

Chinese blue-chips lost more than 6% at a point in the morning session, having closed higher before a 3-day national holiday amid expectations that pressures on China’s economy were easing. They later clawed back some losses, and finished the morning session down 5.5%.

The fall in Chinese shares came despite a move on Monday by China’s central bank to cut RRR (reserve requirements) for small banks to help boost lending to small and private firms.

Australian shares were off 0.9%.

Japanese financial markets are closed until Tuesday for a National holiday, but Nikkei 225 futures were down 2.3% at 21,965.

E-Mini futures for the S&P 500 slid 1.9%, erasing Friday’s gains signaling a lowere open for US stocks Monday.

Currencies: Monday, investors flocked to the safe-haven JPY, USD dropped 0.4% Vs the Japanese currency to 110.61.

China’s RMB Yuan plunged, with the offshore unit weakening to 6.8215 per USD, its weakest since 10 January before paring some losses.

The onshore RMB Yuan weakened nearly 1% to 6.7980 per USD before bouncing back to 6.7832.

EUR was down less than 0.1% on the day at $1.1193, and .DXY, which tracks the Buck Vs a basket of 6 peers, was flat at 97.519.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »60.54 USD-1.40-2.31%May 191:32AM EDT
ICE Brent Crude »69.34 USD-1.51-2.18%May 191:30AM EDT
NYMEX RBOB Gasoline »1.99 USD-0.03-1.69%May 191:30AM EDT
Dubai Crude Spot »68.42 USD-1.70-2.48%Dec 021:40AM EDT
ICE Gas Oil »633.25 USD-15.75-2.49%May 191:19AM EDT
NYMEX No2 Heating Oil »2.04 USD-0.03-1.63%May 191:30AM EDT
NYMEX Nat Gas »2.57 USD+0.00+0.08%May 191:31AM EDT
ICE NBP Nat Gas »33.99 GBP+0.000.00%May 1911:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,282.08USD+3.15+0.25%Dec 021:39AM EDT
COMEX 100oz Gold »1,282.20USD+3.00+0.23%May 199:18PM EDT
Silver Spot »14.85USD-0.07-0.47%Dec 021:39AM EDT
Platinum Spot »856.51USD-12.49-1.46%Dec 021:39AM EDT
Palladium Spot »1,358.00USD-13.00-0.96%Dec 021:39AM EDT
COMEX Copper »2.79USD-0.03-1.18%May 1912:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »352.50USC-10.50-2.98%May 198:26PM EDT
CBOT Wheat »428.00USC+0.000.00%May 195:30PM EDT
KCBT Wheat »386.25USC-6.75-1.75%May 199:59PM EDT
MGE Spring Wheat »499.50USC+0.000.00%May 191:15AM EDT
Euronext Milling Wheat »185.50EUR+0.000.00%May 1912:29PM EDT
CBOT Soybean »812.25USC-17.25-2.12%May 1911:31PM 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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