WEEKLY FUNDAMENTAL REPORT – METALS & ENERGY
Overview
Market Overview
Gold futures on the COMEX Division of the New York Mercantile
Exchange bounced off, as recent price pullbacks are viewed as
favorable opportunities for investors to continue to diversify into
safehaven assets amid worsening concern over euro zone debt
problems.
Crude oil dropped the most in a week in New York, trimming a fourth
consecutive weekly gain, on concern that European leaders meeting
today haven’t taken sufficient steps to contain the region’s debt crisis.
Base metals were higher on the London Metal Exchange, encouraged
by more buoyant equity markets, although market players remain
skeptical of the stability of gains, given extremely illiquid market
conditions and persisting macroeconomic risk. But at the end
speculators booked profit at higher levels amid a concern about the
global economy and weak dollar mainly influenced the prices here
.
KEY EVENTS
Sept 19
th
– Sept 23
rd
, 2011
USD Unemployment Claims
USD Building Permits
USD Housing starts
GLOBAL ECONOMIC UPDATE
The Euro was lower against the U.S. Dollar after the release of U.S.
data on Michigan Consumer Sentiment Index. According to the leaders of
the EU, the conditions for the 8 billion euro tranche have not been
fulfilled yet. But perhaps this isn't the Greeks this time -it might be due
to the demand for collateral made by Finland.
The Nikkei stock average rose more than 2 per cent, clearing some recent
Forex Major
INR
ICE Dollar
Index
Euro
Yen
British Pound
%CHG
1.50
-0.78
1.06
-1.02
-0.60
CLOSE
47.265
76.6
1.38
76.77
1.58
resistance levels, as coordinated action from central banks calmed fears of a European credit freeze and sent
financial shares surging. It has also been influenced after four central banks coordinated to provide more short term
dollar liquidity to European banks.