Economic Buzz: U.S Non-Manufacturing Sector Grow In May

The economic activity in the non-manufacturing sector grew in May for the 41st consecutive month, said the nation's purchasing and supply executives in the latest Non-Manufacturing ISM report on business on Wednesday.

The NMI registered 53.7 percent in May, 0.6 percentage point higher than the 53.1 percent registered in April. This indicates continued growth at a slightly faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 56.5 percent, which is 1.5 percentage points higher than the 55 percent reported in April, reflecting growth for the 46th consecutive month. The New Orders Index increased by 1.5 percentage points to 56 percent, and the Employment Index decreased 1.9 percentage points to 50.1 percent, indicating growth in employment for the 10th consecutive month. The Prices Index decreased 0.1 percentage point to 51.1 percent, indicating prices increased at a slower rate in May when compared to April. According to the NMI, 13 non-manufacturing industries reported growth in May. The majority of respondents' comments are optimistic about business conditions. However, there is a degree of uncertainty about the long-term outlook.
Source by Commodity Insights

Economic Buzz: U.S April Factory Orders Increase 1%

New orders for manufactured goods in April, up two of the last three months, increased $4.9 billion or 1.0 percent to $474.0 billion, the U.S. Census Bureau reported on wednesday. This followed a 4.7 percent March decrease. Excluding transportation, new orders decreased 0.1 percent.
Source by Commodity Insights

Gold Jumps As Equities Bump

Gold  .........
Gold futures jumped in the Asia electronic session today as the dull equity markets attracted investors towards the yellow metal.
Asian stocks fell Wednesday after U.S. equities lost ground overnight amid concerns the Federal Reserve may taper its bond purchases, while Japanese shares seesawed as investors awaited a key policy speech from Prime Minister Shinzo Abe.
Australia’s S&P/ASX 200 fell 1.2%, extending losses after data showed the domestic economy expanded at a slower-than-expected rate during the January-March quarter. Elsewhere, the Shanghai Composite eased 0.1%, Hong Kong’s Hang Seng Index fell 0.7%, and South Korea’s Kospi gave up 0.6%.
In Japan, the Nikkei Stock Average and the broader Topix index slipped 0.1% each ahead of Abe’s widely anticipated outline of his economic growth strategy, due later in the day. The Japanese benchmarks swung between gains and losses, changing direction several times.
Gold for August delivery is trading up $9 at $ 1406 per ounce on the Comex division of the New York Mercantile Exchange. It dropped $14.70, or 1%, to settle at $1,397.20 an ounce yesterday.
The move came a day after gold prices tacked on $18.90 an ounce, or 1.4%, to close at $1,411.90, helped by a decline in the dollar on data showing a contraction in U.S. manufacturing in May. Prices for the August gold contract had lost $19 on Friday.
On Tuesday, U.S. equities moved lower in afternoon trading as Fed worries weighed. Separate data showing the fastest home-price growth in more than seven years and the U.S. trade gap widening less than expected took a back burner.
The markets will further assess the Fed’s bond buying — aimed at stimulating economic growth — when the widely watched U.S. employment report for May is released on Friday. An employment report from ADP comes out on Wednesday.
MCX August gold futures may open today’s session near Rs 27250 levels with resistance near Rs 27350 levels.
Source by Commodity Insights

Economic Buzz: China Service-Sector Growth Remains Weak- HSBC

China's service-sector growth remained at low levels in May though activity still increased, HSBC reported Wednesday. The bank's China Services Business Activity Index edged up to 51.2 from April's 51.1 but was still one of the lowest readings in the series history, HSBC said.
Source by Commodity Insights

Economic Buzz: Australia Holds Interest Rates Steady

The Reserve Bank of Australia held its policy interest rate unchanged on Tuesday, in a widely expected move, with the central bank citing reasonable prospects for a pick-up in global growth next year. In a statement accompanying the decision, RBA Gov. Glenn Stevens said that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand. The Australian currency showed brief volatility after the move but quickly stabilized, buying 97.26 U.S. cents, up modestly from 97.14 U.S. cents minutes ahead of the decision. The Aussie dollar had traded above parity with its U.S. rival at the time of the May rate cut but began losing ground following the easing.
Source by Commodity Insights

Economic Buzz: U.S Construction Spending Improves In April

The U.S. Census Bureau of the Department of Commerce announced Tuesday thatconstruction spending during April 2013 was estimated at a seasonally adjustedannual rate of $ 860.8 billion, 0.4 percent  above the revised Marchestimate of $ 857.7 billion. The index  registered a drop of  0.8% inthe the previous month. Analysts expected 0.8% growth. The April figure is 4.3percent  above the April 2012 estimate of $ 825.1 billion. During the firstfour months of this year, construction spending amounted to $ 250.7 billion, 4.5percent above the $ 239.8 billion for the same period in 2012 .

 Source by Commodity Insights

Oil Dips Below $93; API Data Due

Oil.........

Crude oil futures dipped below $93 a barrel in the mixed movement in the Asian equities today. The traders also await the API data later today.
Crude for July delivery fell 42 cents, or 0.5%, to $93.03 in electronic trade during Asian trading hours on the New York Mercantile Exchange. Yesterday, it rose $1.48, to settle at $93.45 a barrel
Most Asian markets endured wide swings between gains and losses Tuesday as buying in the wake of an overnight advance on Wall Street was countered by concerns over China’s growth trajectory.
Oil prices on Monday climbed 1.6% following better-than-expected May readings on manufacturing activity throughout Europe, and as political instability in the Middle East fed supply concerns.
After the close of trade on the New York Mercantile Exchange on Tuesday, investors will receive a weekly update about U.S. crude inventories. Analysts polled by Platts expect crude-oil stocks to have declined by 1 million barrels during the week ended May 31. Analysts also forecast a rise of 1 million barrels in gasoline stocks, and an increase in distillate stocks by 1.4 million barrels.
The American Petroleum Institute is scheduled to release its weekly report at 4:30 p.m. U.S. Eastern time. The more closely watched data from the U.S. Energy Information Administration is due Wednesday at 10:30 a.m. Eastern time.
Last week, crude supplies, as reported by the EIA, unexpectedly jumped 3 million barrels to 397.6 million barrels, bringing inventory to the highest level since the EIA began collecting data in 1978.
Despite high production from the Organization of the Petroleum Exporting Countries and the U.S., oil ministers at an OPEC meeting Friday agreed to keep their output target at 30 million barrels a day for the rest of the year, with many members expressing satisfaction with current price levels of about $100 a barrel for Brent crude.
MCX June crude oil futures may open today’s session near Rs 5250 levels with support around Rs 5205 and Rs 5170 levels.
Source by Commodity Insights

Gold Flattens After Gains

Gold.......
Gold flattened in the Asia electronic session today after the metal jumped above $1410 lifted by a weaker dollar in the wake of data showing a contraction in U.S. manufacturing in May. The non farm payrolls data will be the big news this week, further putting light on the QE program.
Gold for August delivery is trading 0.7 at $ 1411 an ounce on the Comex division of the New York Mercantile Exchange. It rose $18.90, or 1.4%, to settle at $1,411.90 an ounce on Monday
On Monday, the dollar also fell sharply after the ISM figures, providing support for gold and other commodities.
On Friday, gold prices fell $19 an ounce after better-than-expected data about manufacturing activity in the Chicago area, and after a gauge on U.S. consumer sentiment in May reached the highest level since 2007.
Data Monday showed that the Institute for Supply Management’s index fell to 49.0% last month from 50.7% in April. That marked the first contraction since November.
China experts weighed conflicting data on the nation’s manufacturing sector, with HSBC reporting Monday that the sector contracted in May, while government numbers released earlier pointed to a pickup in activity.
Meanwhile, manufacturing PMI for the euro zone climbed to 48.3 from 46.7 in April, marking the highest level in 15 months. But the reading still indicated contraction.
MCX August gold futures may open today’s session near Rs 27300 levels with support near Rs 27230- 200 levels.
Source by Commodity Insights

Lead Gallops Higher

Lead.......

Lead prices are galloping higher on account of recovery in China PMI from official sources. The data showed a rise of 50.8 in May compared to 50.6 in the month of April. The three month lead prices were last seen trading at $ 2217 per tonne on Monday, up 1.4 percent.
Lead has been in the news these days for all the right reasons. The inventories of lead have been moving down while the demand from automobiles has resulted in spot prices jumping up. The spot prices of lead have been running at a premium of $ 8 per tonne against three month prices. The spot prices were last seen at $ 2224 per tonne.
LME Lead inventories have been down by 31 percent this year and this is one metal that has seen a considerable drawdown in warehousing inventories compared to some of the other big names like Copper and Nickel.
Indian Lead futures were trading at Rs 125.6 per kg, up 1.17 percent. Though the prices are in a overbought zone they can seen some more recovery towards Rs 126-127 per kg.
Source by Commodity Insights

Copper Is Likely To Get Underpinned By Chinese PMI

Copper............

Copper prices are likely to get underpinned by Chinese PMI data. The data released last night had shown that official Purchase Manager's Index rose to 50.8 in May compared to 50.6 in the month of April. This reading is also stronger than expectations of 50.1 figure. Metals are expected to open with a positive undertone in India.
Meanwhile, Fund managers has been staying away to take any fresh long positions in the COMEX Copper contracts. The report showed that the short positions were declined but that decline didn't shift to a material increase in long positions.
COMEX Copper fund managers, Commitment of traders report for week ending 28 May 2013 showed decline in the short positions while there was concurrent minor decrease of long positions by hedge fund managers. The total short positions declined by 899 contracts taking total short contracts number to 36038 contracts against 36937 contracts in the previous week.
COT report showed that long contracts decreased by just 728 contracts and were at 27120 contracts from 27848 contracts a week before. Total net short positions therefore moved to 8918 contracts from 6158 contracts on 21 May.
LME Copper settled at $ 7270 per tonne on Friday, against $ 7275 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 411.85 per kg, down 1 percent in the week. Resistance for the contract is at Rs 414 per kg. Downtrend can take Copper towards Rs 408 per kg.
Source by Commodity Insights