INTERNATIONAL COMMODITY NEWS :
- Copper prices rose by 3.97 per cent on Wednesday after China’s exports in March returned to growth for the first time in nine months adding to further signs of stabilization in the world’s second largest economy that cheered regional investors which raised the demand outlook for the metal.
- Gold moved further back from the previous day’s three week high on Wednesday as the dollar rebounded and European shares surged as upbeat Chinese trade data boosted risk appetite. U.S. gold futures for June delivery were down 1.09% to $1,246.80 an ounce by 0946 GMT.
- Oil prices fell on Wednesday after Saudi Arabia’s oil minister appeared to rule out an oil production freeze ahead of Sunday’s meeting of major producers in Doha. Crude oil for May delivery on the New York Mercantile Exchange was down 62 cents, or 1.47%, to trade at $41.58 a barrel by 0.7.42 GMT.
ECONOMY NEWS :
- European financial market participants saw a hard landing in China and deflation in the euro zone as the two biggest macro risks facing their credit markets this year, according to poll results released on Wednesday. Nearly a third of financial market participants see a further slowdown in the Chinese economy as the main macro risk facing European credit markets this year, according to a Moody’s Investor Service poll taken at two recently held conferences.
- A British vote to leave the European Union on June 23 would hurt the economy, an overwhelming majority of economists said in a Reuters poll, and could push the Bank of England to cut interest rates for the first time since the financial crisis.Conversely, if the outcome was to remain a member of the EU, those saying there would be a net positive economic boost and those saying neutral were roughly split.
- Solid growth and record employment will allow Germany to abide by EU debts rules sooner than forecast while still hiking overall state spending by five percent each year, the Finance Ministry said on Wednesday.European Union rules saying euro zone states should keep the ratio of debt to gross domestic product at 60 percent or less have been broken for years by Germany and other countries.
TRADING STRATEGY :
- BUY GOLD ABOVE 1247 TGT 1252 1258 SL BELOW 1241
- SELL GOLD BELOW 1242 TGT 1237 1231 SL ABOVE 1248