INTERNATIONAL COMMODITY NEWS :
- Crude oil prices reversed early gains in Asia on Wednesday as weak China manufacturing estimates trumped U.S. industry data that showed a much larger than expected draw in U.S. stockpiles last week. On the New York Mercantile Exchange, WTI crude for November delivery traded down 0.33% to $46.20 a barrel.
- Gold prices edged higher in European morning hours on Wednesday, as the stronger U.S. dollar continued to weigh on the precious metal, but disappointing Chinese manufacturing data increased safe-haven demand.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.14% at $1,126.30.
- Brent crude oil rose toward $50 a barrel on Wednesday as a draw down in U.S. crude oil stocks outweighed the negative impact of weak economic manufacturing data from China. Oil prices have been depressed for more than a year and are now trading at less than half their peak levels in 2014 thanks to massive oversupply by oil producers in the Middle East and North America.
ECONOMY NEWS :
- Greek Prime Minister Alexis Tsipras appointed two respected bailout negotiators to head his economic team on Tuesday, moving to assure wary European partners that the new government will not backtrack on its cash-for-reform deal.Tsipras reappointed Euclid Tsakalotos as finance minister and made George Chouliarakis deputy finance minister.
- The outlook for the global economy became bleaker on Wednesday as signs of a deeper downturn in China emerged, despite massive policy stimulus, coupled with weak growth at best in Europe.China’s vast factory sector shrank at its fastest rate in 6-1/2-years in September, a private survey showed, sending investors worried about sagging global growth scurrying out of risky assets.
- Wall Street stock prices fell on Wednesday, dragged down by economic reports portraying U.S. factories growth as tepid and China in its worst manufacturing contraction since the global financial crisis. The United States has accused Volkswagen of rigging its cars to conceal their emissions when the engines were tested.
TRADING STRATEGY :
- BUY GOLD ABOVE 1136 TARGET 1141 1147 SL 1130
- SELL GOLD BELOW 1130 TARGET 1125 1119 SL 1136