World Market News Update – European Market, Spot Gold, LME Copper and Outlook Report

* LME Copper stocks jumped by 0.8 percent on Thursday.
* SPDR gold holdings plunge to lowest since August 2008.
* German Flash Manufacturing PMI fell to 51.5-mark in July.

European markets are trading flat today owing to mixed corporate earning results. Asian markets are trading on a positive note and the US stock futures are trading in the red.

French Flash Manufacturing PMI fell to 49.6-mark in July from 50.7 levels in June. German Flash Manufacturing PMI fell to 51.5- mark in July from 51.9 levels in June.

Spot gold prices are trading lower by 0.8 percent today and plunged to 5 and a half year low levels owing to strength in the DX, putting the metal on course for its biggest weekly loss in nine months.

Also, holdings in gold-backed exchange-traded products are at the lowest since August 2008. MCX gold futures trading lower by 1 percent at Rs.24699/10 gms.

Spot silver prices are trading lower by 0.9 percent at $14.52/oz. Weakness in gold prices along with strength in the DX is acting as a negative factor. MCX silver prices are trading lower by 0.9 percent at Rs.34378/kg.

LME Copper prices are trading marginally positive but sharp gains were capped owing to strength in the DX. Also, manufacturing data from China along with gain of 0.5 percent in LME stocks acted as a negative factor. MCX copper prices are trading higher by 0.1 percent at Rs.338.75/kg.

Oil prices are trading mixed today with Brent trading lower by 0.2 percent and Nymex rising by 0.6 percent. Dollar strength along with unexpected increase in US crude stocks is exerting pressure on prices. While on the other hand, the World Bank (WB) on Wednesday upped its crude oil forecast to $57 a barrel (bbl) for 2015 from its earlier forecast of $53 a barrel in April. On the MCX, oil prices are trading higher by 0.6 percent trading at Rs.3131/bbl.

OUTLOOK REPORT :

We expect precious metals to trade lower today as strength in the DX on expectations of rate hike in the US will continue to haunt gold. Also, investor interest seems to be declining in the metal as indicated by falling SPDR and CFTC holdings.

On an intraday basis, we expect oil prices to trade lower as reluctance by the OPEC to cut output coupled with rising crude oil stockpiles in the US will bother prices. Also, strength in the DX along with weak manufacturing data from China will act as a negative factor.

We expect LME Copper prices to trade lower today as China’s manufacturing PMI dropped to a 15-month low in July owing to the recent stock market crash and weak export demand. Also, strength in the DX on anticipation of US rate hike for the first time in nearly a decade will exert pressure.

World Market News Update – European Market, Spot Gold, LME Copper and Outlook Report

* LME Copper stocks jumped by 0.8 percent on Thursday.
* SPDR gold holdings plunge to lowest since August 2008.
* German Flash Manufacturing PMI fell to 51.5-mark in July.

European markets are trading flat today owing to mixed corporate earning results. Asian markets are trading on a positive note and the US stock futures are trading in the red.

French Flash Manufacturing PMI fell to 49.6-mark in July from 50.7 levels in June. German Flash Manufacturing PMI fell to 51.5- mark in July from 51.9 levels in June.

Spot gold prices are trading lower by 0.8 percent today and plunged to 5 and a half year low levels owing to strength in the DX, putting the metal on course for its biggest weekly loss in nine months.

Also, holdings in gold-backed exchange-traded products are at the lowest since August 2008. MCX gold futures trading lower by 1 percent at Rs.24699/10 gms.

Spot silver prices are trading lower by 0.9 percent at $14.52/oz. Weakness in gold prices along with strength in the DX is acting as a negative factor. MCX silver prices are trading lower by 0.9 percent at Rs.34378/kg.

LME Copper prices are trading marginally positive but sharp gains were capped owing to strength in the DX. Also, manufacturing data from China along with gain of 0.5 percent in LME stocks acted as a negative factor. MCX copper prices are trading higher by 0.1 percent at Rs.338.75/kg.

Oil prices are trading mixed today with Brent trading lower by 0.2 percent and Nymex rising by 0.6 percent. Dollar strength along with unexpected increase in US crude stocks is exerting pressure on prices. While on the other hand, the World Bank (WB) on Wednesday upped its crude oil forecast to $57 a barrel (bbl) for 2015 from its earlier forecast of $53 a barrel in April. On the MCX, oil prices are trading higher by 0.6 percent trading at Rs.3131/bbl.

OUTLOOK REPORT :

We expect precious metals to trade lower today as strength in the DX on expectations of rate hike in the US will continue to haunt gold. Also, investor interest seems to be declining in the metal as indicated by falling SPDR and CFTC holdings.

On an intraday basis, we expect oil prices to trade lower as reluctance by the OPEC to cut output coupled with rising crude oil stockpiles in the US will bother prices. Also, strength in the DX along with weak manufacturing data from China will act as a negative factor.

We expect LME Copper prices to trade lower today as China’s manufacturing PMI dropped to a 15-month low in July owing to the recent stock market crash and weak export demand. Also, strength in the DX on anticipation of US rate hike for the first time in nearly a decade will exert pressure.