INTERNATIONAL COMMODITY NEWS :
- Natural Gas futures fell during noon trade in the domestic market on Friday as investors and speculators exited positions in the energy commodity tracking weakness overseas where prices fell on profit taking after a stellar rally in the previous session.The fuel had rallied 8 per cent in the international market on Thursday after a smaller than expected build in US storage levels signaled a pickup in demand for the fuel in the world’s biggest gas consuming nation.
- Gold prices held steady at three-week highs on Friday, as the Bank of Japan’s stimulus measures disappointed market expectations and as the Federal Reserve’s decision to leave its monetary policy unchanged continued to support. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were little changed at $1,341.75.The August contract ended Thursday’s session 0.50% higher at $1,341.20 an ounce.
- U.S. oil futures fell to fresh three-month lows on Friday, as concerns over a global glut of oil and refined products continued to dominate sentiment.U.S. crude futures for September delivery dropped 0.80% to a three-month low of $40.83 a barrel. On the ICE Futures Exchange in London, the October Brent contract tumbled 0.99% to $42.80 a barrel, the lowest since April.
ECONOMY NEWS :
- The euro zone’s biggest banks would fare better in case of stress than two years ago as they have amassed capital and made headway in fixing their balance sheets, the European Central Bank said on Friday after a stress test of the bloc’s 37 biggest banks.The banks entered the test with an average Common Equity Tier 1 capital ratio of 13 percent, above the 11.2 percent two years ago, and would still hold a 9.1 percent capital ratio in case of an adverse scenario, above the 8.6 percent seen in 2014, the ECB said.
- Dallas Federal Reserve Bank President Robert Kaplan said on Friday that the U.S. economy is making slow progress toward meeting the central bank’s objectives.”I’d say we are making slow but … sluggish progress to meeting our objectives,” Kaplan told a community bankers association in New Mexico.The Fed has a dual mandate of full employment and an inflation target of 2 percent.
- Italian bank Monte dei Paschi di Siena has secured underwriters to back a turnaround plan involving the sale of 9.2 billion euros ($10.3 billion) in bad loans and a 5 billion euros capital increase, the lender said in a statement on Friday. The country’s third-largest lender said it had signed a pre-underwriting agreement with a consortium of Italian and international banks for the capital raising, and that a state-backed banking bailout fund, Atlante, had agreed to underwrite the sale of a portion of the bank’s riskier bad debts.
TRADING STRATEGY :
- BUY GOLD ABOVE 1355 TARGET 1360 1366 SL BELOW 1350
- SELL GOLD BELOW 1351 TARGET 1346 1340 SL ABOVE 1356