INTERNATIONAL COMMODITY NEWS :
- Oil edged further above $45 a barrel on Tuesday as forecasts for a drop in U.S. inventories and speculation of producer action to prop up prices countered concern about a supply glut.Total U.S. crude inventories were expected to fall by 1 million barrels in weekly reports, although market intelligence firm Genscape has reported a rise of more than 307,000 barrels at the Cushing, Oklahoma U.S. crude delivery hub, traders said.
- Gold prices slumped to a one-week low in European trade on Tuesday, amid growing expectations of a U.S. interest rate hike by the end of this year.Gold for December delivery on the Comex division of the New York Mercantile Exchange fell to a session low of $1,336.70 a troy ounce, the weakest since July 29. It was last at $1,337.15 by 06:59GMT, or 2:59AM ET, down $4.15, or 0.31%.
- Copper futures fell during late noon trade in the domestic market on Tuesday as investors and speculators cut positions in the industrial metal as improved China inflation data dimmed the case for fresh policy easing dampening demand prospects.China’s producer prices fell 1.7 per cent year on year in July 2016 marking the smallest decline in nearly two years while consumer inflation stood at 2 per cent matching analysts’ estimates.
ECONOMY NEWS :
- Indonesia’s President Joko Widodo is considering cutting the corporate tax rate to 17 percent from 25 percent to match Singapore’s tax rate, he was quoted as saying on the cabinet secretary’s website on Wednesday.”The thinking is simple. If Singapore’s corporate income tax is 17 percent and ours is 25 percent, everybody will go there,” Widodo told a tax amnesty roadshow on Tuesday night, according to the website.
- Several U.S. states studied by S&P Global Ratings are ill-equipped to deal with an economic recession, hampered by the slow rebound in U.S. economic growth after the damage wrought by the Great Recession.Fiscal imbalances, slower state tax revenue growth and increased spending on social services have contributed to a challenging economic landscape, as real GDP has only increased at 2.1 percent per year since 2009, S&P said in a report issued on Tuesday.
- U.S. household debt hit $12.29 trillion in the second quarter, up $434 billion from a year earlier as auto loans and credit card debt increased, a Federal Reserve Bank of New York survey showed on Tuesday.Some 4.8 percent of the outstanding debt was in some stage of delinquency, down from 5.6 percent from a year ago, according to the quarterly household debt and credit report.
TRADING STRATEGY :
- BUY GOLD ABOVE 1334 TARGET 1339 1345 SL BELOW 1329
- SELL GOLD BELOW 1328 TARGET 1323 1317 SL ABOVE 1333