These losses come after gains averaging 1.4% on Friday March
17. Volume this morning has been average with 6,319 lots traded
as of 06:45 GMT.
Precious metals prices are up an average of 0.3% this morning,
with spot gold prices up 0.4% at $1,234.16 per oz, this after
gains averaging 0.8% on Friday.
In Shanghai, the base metals are for the most part little
changed, the exceptions are nickel where prices are up 1.7% and
lead, which is up 0.5%. Copper prices are little changed at
47,950 yuan per tonne. Spot copper prices in Changjiang are up
0.3% at 47,650-47,850 yuan per tonne and the LME/Shanghai
copper arb ratio is at 8.14, meaning the arb window remains
In other metals in China, May iron ore future prices are off
0.4% on the Dalian Commodity Exchange and on the Shanghai
Futures Exchange, steel rebar prices are off 0.6%, while gold
and silver prices are up 0.4%. In international markets, spot
Brent crude oil prices are down 0.4% at $51.53 per barrel and
the yield on US 10-year treasuries are around 2.49%.
Equities ended last week on a mixed footing with the Euro Stoxx
50 up 0.3%, while the Dow closed down 0.1%. While in Asia this
morning equities are also mixed with the Hang Seng up 0.6%, the
CSI 300 is little changed, the Kospi and the ASX200 are down
0.4%. Japan is closed for a holiday.
In FX, the dollar index continues to retreat as it has been
doing since last week’s US Federal Open Market
Committee (FOMC) decision to raise interest rates. The index
was recently quoted at 100.11. Conversely, major currencies are
firmer with the euro at 1.0769, the sterling at 1.2408, the yen
at 112.64 and the Australian dollar at 0.7728. The yuan is
firmer at 6.8888 and the other emerging market currencies we
follow are firmer too, especially the rand at 12.6572.
On the economic data front, German PPI came out at 0.2%, which
is weaker than of late, later the Bundesbank releases its
monthly report and Bundesbank president Jens Weidmann is
speaking, as are FOMC member Charles Evans, UK Monetary Policy
Committee member Andrew Haldane and US president Donald Trump
– see table below for more details.
Base metals prices seem to be consolidating this morning after
a generally stronger tone last week. The underlying bias seems
to be to the upside but overhead selling is likely to continue
to cap the upside, as such, we expect more range-trading.
With the US interest rate rise now out of the way, gold prices
are managing to float higher again and the weaker dollar will
be helping with that. The next focal point for gold is likely
to be the French presidential election, but that is still over
a month away with the first round on April 23. As such, we
would look for gold prices to range trade.
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