INTERNATIONAL COMMODITY NEWS :
- Crude oil prices held onto overnight gain in Asia on Tuesday with U.S. industry estimates on stockpiles ahead. The American Petroleum Institute will release its estimates of U.S. crude and refined product stocks at the end of last week on late Tuesday to be followed by more closely-watched data from the U.S. Department of Energy on Wednesday.
- Gold fell in Asia on Tuesday with markets in China shut for holidays and attention on Federal Reserve minutes from the September meeting this week. On the Comex division of the New York Mercantile Exchange, gold for December delivery eased 0.17% to $1,135.70 a troy ounce. An interest rate hike is viewed as bearish for gold, which struggles to compete with high -yield bearing assets in rising rate environments. gold futures inched down on Monday amid a relatively flat dollar, as a wave of disappointing economic indicators exacerbated fears of a global recession. The poor readings come in the wake of a downbeat U.S. national employment report on Friday, which bolstered dovish sentiments for a delayed interest rate hike by the Federal Reserve.
- Copper was flat on Tuesday as a week-long holiday in China blunted interest, while comments by the chief of commodities giant Glencore flagging looming supply cuts failed to spur buying.Copper prices have revived from August’s six-year lows below $5,000 a tonne after a string of supply cuts by producers such as Glencore.”China demand has already improved, you have seen a massive decline in bonded inventories, and tenders from the electrical grids have picked up. Wire rod and mill purchases have also increased.”
ECONOMY NEWS :
- The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds, according to a study released on Tuesday. The study, by two left-leaning non-profit groups, found that nearly three-quarters of the firms on the Fortune 500 list of biggest American companies by gross revenue operate tax haven subsidiaries in countries like Bermuda, Ireland,Luxembourg and the Netherlands.
- Twelve Pacific Rim countries on Monday reached the most ambitious trade pact in a generation, aiming to liberalize commerce in 40 percent of the world’s economy in a deal that faces skepticism from U.S. lawmakers.The Trans-Pacific Partnership (TPP) pact struck in Atlanta after marathon talks could reshape industries, change the cost of products from cheese to cancer treatments and have repercussions for drug companies and automakers.
- Money is fleeing emerging markets en masse in 2015 for the first time in 27 years and few global investors are tempted to return to equities, currencies or bonds there as many of the populous economies defining the asset class slow inexorably.Over the three decades or so of the modern ’emerging markets’ securities industry, periodic shocks and sharp drawdowns have typically been followed by big returns for those bold enough to snap up cheap assets during the darkest moments.
TRADING STRATEGY :
- BUY GOLD ABOVE 1139 TARGET 1144 1151 SL 1134
- SELL GOLD BELOW 1132 TARGET 1127 1121 SL 1138