In Asia: Gold Flat, USD Weakening, Stocks Rising + Commodities

In Asia: Gold Flat, USD Weakening, Stocks Rising + Commodities

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

In Asia

Note: Reuters reported Wednesday that Chinese state-owned companies have bought more than 1.5-M tonnes of US Soybean in the 1st major US Soybean purchases in more than 6 months. 

Markets are slowly growing less pessimistic about the chances of a US-China trade deal after a lot of news this week pointed to easing tensions between the 2 internationals powers. 

Some analysts expect China’s economic growth could slow to around 6% next year, the slowest pace since Y 1990, from around 6.5% in Y 2018.

Gold: Gold flat to  little changed Thursday as USD steadied and stocks climbed on signs of easing trade tensions between the United States and China,

Note: Palladium rose to a record high, trading at a premium to the Gold.

  • Spot gold and US gold futures were steady at $1,245.74 oz and $1,250.3 oz, respectively, as of 0657 GMT.

Asian market sentiment is Neutral on the day, we have got a little more positive sentiment than we anticipated from US-China trade tensions, which is weighing on the Northside,

Energy:  Crude Oil prices are up Thursday, buoyed by a draw-down in US stockpiles and indications that the trade dispute between the United States and China, the world’s Top 2 Crude Oil consumers, is easing.

  • ICE Brent Crude Oil futures LCOc1 were at $60.36 bbl at 0733 GMT, +21c, or 0.4%, from Wednesday’s close. 
  • NYMEX WTI Crude Oil futures CLc1 were at $51.25 bbl, +10c, or 0.2%.

A decline in US Crude Oil stocks also boosted Crue Oil, which has been riding higher on expectations that the OPEC-led planned output cuts would re-balance the market in Y 2019.

Currencies:  Bearish bets on most Asian currencies fell over the past 2 weeks, a Reuters poll revealed Thursday, as the Fed is widely expected to hold rates next year after a thought hike next week’s FOMC meeting.

A weakening in the USD outlook also gave Asian currencies a lift.

  • EUR/USD: +0.5% at 1.1369
  • GBP/USD: +1.3% at 1.2646
  • USD/CNH: -0.5% to 6.871
  • USD/JPY: -0.1% to 113.21

Although USD gained over 5% YTD on the back of Fed rate hikes, the recent softening of US Treasury yields and somewhat soft economic data have led some to forecast that USD may have hit a Top.

Equities: Asian stock markets rallied Thursday on signs of easing US-China trade tensions and expectations that China will step up efforts to support its cooling economy. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, building on early gains made after British PM Theresa May survived a no-confidence vote.

Financial spreadbetters expect shares in Europe to follow suit, with Frankfurt’s DAX seen opening 0.3% higher at 10,963 and Paris’ CAC expected to gain 0.2%. London’s FTSE is seen flat.

US stock futures rose 0.4%, pointing to a firmer opening on Wall Street.

In Asia, gains were concentrated in Chinese shares, with Chinese blue-chips up 1.5% and Hong Kong’s Hang Seng index gaining 1.1%.

Japan’s Nikkei stock index ended 1% higher, while Australian shares gained 0.1%

Commodities: Energy, Metal and Agriculture Grains

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »51.22 USD+0.07+0.14%Dec 182:47AM EST
ICE Brent Crude »60.31 USD+0.16+0.27%Dec 187:00PM EST
NYMEX RBOB Gasoline »1.42 USD+0.00+0.27%Dec 182:47AM EST
Dubai Crude Spot »58.58 USD-0.02-0.03%Dec 022:57AM EST
ICE Gas Oil »556.75 USD-8.25-1.48%Jan 197:00PM EST
NYMEX No2 Heating Oil »1.85 USD+0.00+0.09%Dec 182:46AM EST
NYMEX Nat Gas »4.11 USD-0.03-0.66%Dec 182:47AM EST
ICE NBP Nat Gas »67.00 GBP+0.95+1.42%Dec 187:00PM EST
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,245.55USD+0.15+0.01%Dec 027:00PM EST
COMEX 100oz Gold »1,243.50USD-0.90-0.07%Dec 1810:12PM EST
Silver Spot »14.74USD+0.01+0.07%Dec 027:00PM EST
Platinum Spot »802.10USD+3.60+0.45%Dec 027:00PM EST
Palladium Spot »1,265.92USD+4.37+0.35%Dec 027:00PM EST
COMEX Copper »2.79USD+0.02+0.70%Dec 182:33AM EST
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »375.00USC-1.25-0.33%Dec 187:59PM EST
CBOT Wheat »515.25USC+0.000.00%Dec 182:19PM EST
KCBT Wheat »483.75USC+0.000.00%Dec 181:00AM EST
MGE Spring Wheat »580.50USC+0.000.00%Dec 182:29AM EST
Euronext Milling Wheat »206.25EUR+0.000.00%Mar 197:00PM EST
CBOT Soybeans »918.75USC-1.25-0.14%Jan 192:50AM EST

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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