INTERNATIONAL COMMODITY NEWS :
- Copper prices rose on Thursday, after mining giant Glencore (L:GLEN) announced wider spending cuts as the commodities group races to cut debt and shore up its balance sheet.The Swiss-based company cut its capital expenditure for 2016 to $3.8 billion, from an earlier estimate of $5 billion.Glencore said last month it will cut 55,000 metric tons of copper output by the end of 2017, the latest in a string of supply cuts.
- Oil prices inched up on Thursday, but held near seven-year lows amid uncertainty about how quickly the global glut of crude is set to shrink.Oil futures are down more than 10% since the Organization of the Petroleum Exporting Countries failed to agree on output targets last week. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.
- Gold futures edged lower on Thursday, but still stuck in familiar trading range, as market players braced for the first U.S. rate hike since 2006 next week.The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 97.53. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
ECONOMY NEWS :
- India’s cabinet has cleared a $14.7 billion Japanese proposal to build the country’s first bullet train line, a government minister and an official said on Thursday, one of the biggest foreign investments in Indian infrastructure. The decision ahead of Japanese Prime Minister Shinzo Abe’s visit beginning on Friday gives Tokyo an early lead over China, which is also bidding to construct high-speed train lines along large parts of India’s largely British-era rail system.
- The Reserve Bank of India (RBI) said it would intervene in the rupee currency futures market, if required, to manage excessive volatility, ahead of next week’s FOMC meeting. The RBI very often intervenes in the forex market in order to maintain orderly conditions in the market. The central bank said the data for the exchange-traded currency derivatives market would be published in monthly bulletins. The disclosure is the first such by RBI.
- A great majority of European Central Bank governors do not want to boost quantitative easing further, Yves Mersch said, adding that its move to buy new bonds as old ones mature would inject hundreds of billions of euros. “The very large majority of the Governing Council is of the view that the measures are appropriate and that more is not needed to reach our goal,” Mersch told a journalists’ club dinner on Wednesday, referring to the group that sets policy to keep inflation ticking upwards.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075 TARGET 1080 1086 SL 1069
- SELL GOLD BELOW 1070 TARGET 1065 1059 SL 1076