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Copper prices on Thursday caught a bounce from the prior session’s thrashing, while the rest of the metals group were stuck in the red.
High-grade copper for March delivery HGH5, +1.44% added 6 cents, or 2.5%, to $2.569 a pound, rebounding slightly after touching levels not seen since mid-2009. Concerns over a supply glut and slowing consumption in China have weighed on copper prices in recent months.
TRADING TIPS :
GBP/USD touched highs of 1.5223 overnight, before pulling back to 1.5168.Sterling remained under pressure after data on Tuesday showed that the annual rate of consumer inflation in the U.K. slowed to 0.5% last month from 1.0% in November.Consumer prices were unchanged from a month earlier, compared to expectations for an uptick of 0.1%.The report said inflation was flat in December due to falling gas and electricity costs. In addition, transport costs fell by 0.2% from a month earlier, due to falling petrol and diesel prices. The slowdown in inflation underlined expectations that the Bank of England will keep interest rates on hold at record lows for most of this year.
INTRADAY OUTLOOK
Support: 1.5142
Resistance: 1.5203
RECOMMENDATION:
1. Buy GBP/USD Above 1.5205-TG: 1.5225/1.5255 SL 1.5175
2. Sell GBP/USD Below 1.5140-TG: 1.5120/1.5090 SL 1.5170
INTRADAY OUTLOOK
Immediate Support: 1.1725
Immediate Resistance: 1.1796
RECOMMENDATION:
1. Buy EUR/USD Above -1.1798 TG: 1.1818/1.1848 SL 1.1768
2. Sell EUR/USD Below -1.1723 TG:1.1703/1.1673 SL 1.1753
MARKET UPDATES :
Intra-Asean trade is likely to expand from current 24 per cent to 34 per cent, spurred by zero-duty incentives on Asean Free Trade Area (AFTA).Ministry of International Trade and Industry senior director of Asean Economic Cooperation Division, P. Ravidran, said 34 per cent was an ideal target as intra-trades in the European Union and North American Free Trade Agreement currently stood at 70 per cent.Intra-Asean share of total trade stood at US$608.63 billion, or 24.2 per cent, as of July 2014, from a total trade of US$2.51 trillion in the same period.“The removal of duties will encourage intra-trade and with Cambodia, Laos, Myanmar and Vietnam joing the existing six Asean countries, the region has become a free trade area
STOCK RECOMMENDATION :
BUY COCOALAND ABOVE 1.660 TARGET 1.700 1.750 SL 1.610
INTERNATIONAL COMMODITY NEWS :
Gold prices eased in Asia on Thursday even as the dollar weakened slightly in intraday trade.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery fell 0.49 to trade at $1,228.50 a troy ounce.Overnight, gold rose to the highest levels of the session on Wednesday, after data showed that retail sales in the U.S. fell more than expected in December, dampening optimism over the strength of the economic recovery. U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.9% last month, worse than expectations for a drop of 0.1%. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
TRADING STRATEGY :
BUY GOLD ABOVE 1233 TARGET 1238 1244 SL 1227
SELL GOLD BELOW 1225 TRAGET 1220 1214 SL 1231
A late-afternoon rally, triggered by a rebound in beaten-down oil prices, was not enough to lift U.S. stocks out of negative territory on Wednesday. The key benchmarks closed with losses for the fourth straight session.
The S&P 500 SPX, -0.58% declines were broad-based, with eight of 10 main industry groups ending lower. Financials and materials led losses, while utilities rallied. Beaten-down energy sector stocks swung from a 2% loss to end with a gain of 0.1%.
