INTERNATIONAL COMMODITY NEWS :
- Copper prices fell to a four-week low on Monday, after a pair of disappointing manufacturing reports underlined concerns over the health of China’s economy.Copper for September delivery on the Comex division of the New York Mercantile Exchange shed 0.1 cents, or 0.04%, to trade at $2.316 a pound during morning hours in London. It earlier fell to $2.288, the lowest since October 2.
- Gold prices slumped to a four-week low on Monday, as investors continued to cut holdings of the precious metal on expectations of tighter U.S. monetary policy.Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $3.30, or 0.29%, to trade at $1,138.10 a troy ounce during European morning hours. It earlier fell to $1,133.80, the lowest since October 5.
- Oil prices pushed lower on Monday, as persistent worries about future demand from China weighed.On the ICE Futures Exchange in London, Brent oil for December delivery dipped 58 cents, or 1.17%, to trade at $48.98 a barrel during European morning hours. A pair of disappointing manufacturing reports underlined concerns over the health of China’s economy. The Asian nation is the world’s second largest oil consumer after the U.S. and has been the engine of strengthening demand. Elsewhere, crude oil for delivery in December on the New York Mercantile Exchange slumped 58 cents, or 1.23%, to trade at $46.02 a barrel.
ECONOMY NEWS :
- The Indian government could cut corporate tax to 25 percent from 30 percent before a previous deadline of four years, and will provide a roadmap for ending corporate tax exemptions shortly, Revenue Secretary Hasmukh Adhia said on Monday. Finance Minister Arun Jaitley, while presenting his annual budget in February, announced that the government would gradually pare corporate tax by 5 percentage points during the next four years and roll back various tax exemptions.
- UK seasonally adjusted manufacturing Purchasing Managers’ Index, or PMI, climbed notably to 55.5 in October from 51.8 in September, which was revised down from 51.5, figures from the Chartered Institute of Procurement & Supply and Markit Economics showed Monday. Manufacturing activity expanded at the fastest pace in sixteen months in October, as output and new order growth accelerated. Any reading above 50 indicates expansion in the sector.
- Eurozone Purchasing Managers’ Index for the manufacturing sector rose to 52.3 in October from 52 in September, final data published by Markit showed Monday. The reading was above the flash score of 52.Germany’s headline factory PMI slid to a 3-month low of 52.1 in October from 52.3 in September as production and employment growth slowed. The flash reading was 51.6. The French manufacturing PMI remained unchanged at 50.6 in October. It was slightly below the flash score of 50.7. Output increased for second month.
TRADING STRATEGY :
- BUY GOLD ABOVE 1148 TARGET 1153 1159 SL 1142
- SELL GOLD BELOW 1140 TARGET 1135 1129 SL 1146