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

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


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

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
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
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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