Energy & Commodities

MUMBAI (Commodity Online): The trend in copper futures for August delivery on India’s Multi Commodity Exchange (MCX) is bullish and expected to trade with the trend for the day, according to our analyst at Commodity Online.

“For intra-day, support for the commodity is seen at 425.05 and 422.25 levels while resistance is seen at 432.65 and 434.35 levels,” said John Godson, Technical Analyst at Commodity Online.

MCX copper futures for August delivery was seen trading up by 1.14% at Rs.430.50 per kilogram as of 16.38 IST on Friday.

Comex Copper

Copper futures on Comex edged up on Friday and is seen trading bullish supported by firm global cues. Copper futures for September delivery on Globex platform of Comex was seen trading up by 0.63% at $ 3.185 per pound as of 04.51 PM IST on Friday.

On Friday, copper touched to its peak level in more than a week as data releases from the United States, Europe and China shown a positive review on their respective economies.

US Bureau of Labor Statistics is scheduled to release its data on Non Farm payrolls, Private Nonfarm Payrolls and Unemployment Rate at 06.00 PM IST today. Base metal traders may get clues for their further trading from the data released. Also, US Census Bureau is scheduled to release its data on factory orders at 07.30 PM IST today.

In June 2013 compared with May 2013 Industrial producer prices stable in both Euro area and EU27

In June 2013, compared with May 2013, the industrial producer price index remained stable in both the Euro area (EA17) and the EU27, according to estimates from Eurostat, the statistical office of the European Union released on Friday.

In May prices fell by 0.3% in both zones. In June 2013 compared with June 2012, industrial producer prices rose by 0.3% in the euro area and by 0.6% in the EU27.

The UK Markit/CIPS Purchasing Managers’ Index (PMI) for the construction sector offers new hope that the UK economy is improving. UK recorded a strongest construction output growth since June 2010, led by surge in housing activity.

The UK Markit/CIPS rose to 57.0 in July up sharply from last month’s 51.0, according to the data released by Charted Institute of Purchasing and Supply (CIPS) on Friday. (Image Courtesy: Smokedsalmon www.freedigitalphotos.net)

China’s economy appears to have stabilised amid fears that one of the world’s most important growth engines is close to stalling.

A series of small targeted measures from Chinese policy makers in recent months….

….read the full article HERE

Chinese economic data Friday was mixed relative to expectations but on balance was supportive for commodities, says CIBC. Industrial production accelerated 9.7% year-on-year in July. “That’s appreciably stronger than the 8.9% pace expected by the market and previous month’s tempo, although still well below the trend of recent years,” CIBC says. “Retail sales in contrast came in slightly below expectations, advancing by 13.2% (consensus 13.5%), showing little change from the preceding month’s pace.” Fixed-asset investment was up 20.1%, essentially matching estimates. Consumer inflation was steady at 2.7%, a tick below expectations. Producer price inflation fell by 2.3% year-on-year. The data come on the heels of a report Thursday showing exports rose 5.1% year-on-year in July, while imports jumped 10.9%. “It’s risky to read too much into one month of data and there are as yet few signs of a solid turnaround,” CIBC says. “Still, today’s numbers as with yesterday’s trade release lends support to the view that the economy’s performance may be bottoming after a six-month long downshift. Today’s numbers are lending support to commodities and stocks in Asia.” Most base and precious metals are steady to slightly higher and crude oil is also higher as the tra

Canadian employment unexpectedly fell in July on fewer jobs in government and for youths, and wage growth declined to its slowest since 2011.

Employment fell by 39,400 last month, while the jobless rate rose to 7.2 percent from 7.1 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg Newsprojected a 10,000 job gain and an unchanged jobless rate, according to the median forecasts in surveys with 23 responses.

Canada’s job gains have slowed so far this year, with the average monthly gain of 6,000. That’s down from the 27,820 average recorded in the second half of last year. The job report adds to other evidence of an inconsistent expansion, including a record string of 18 monthly trade deficits, an economy that grew by a less than expected 0.2 percent in May and inflation holding below the central bank’s 2 percent target for more than a year.

….more HERE

Marc Faber, the author of “The Gloom, Boom & Doom Report,” says investors need to brace for a drop of 20% or more by the time 2013 closes, predicting a market fallout similar to what was seen in 1987.

“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber said Thursday on CNBC. ”The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks.”

He noted that during a two-day period this week, as the S&P 500 nears an all-time high of 1,709, there have been 170 new 52-week lows. That means just a relatively few companies are driving the market higher.

….read more HERE

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