Commodity Blog

Posts Tagged ‘MSCI’

Copper rebounded today after yesterday’s decline. Analysts think, though, that bears still have upper hand.

The main reason for traders to be pessimistic is the problems of the European Union. Europe makes up about 19 percent of global copper consumption, therefore its problems is very negative to the industrial metal.

Consumer confidence of Europeans fell to almost two-year low last month, according to the European Commission. The industrial production of the Eurozone contracted 2.0 percent in September.

The MSCI All-Country World Index of stocks declined 11 percent. The Standard & Poor’s GSCI Index of 24 commodities advanced despite the negative fundamentals, rising 3.5 percent.

Settlement on copper was higher today, rising to $3.4020 from $3.3605 per pound as of 8:20 GMT today on COMEX. Yesterday, the price was down from $3.4620 to $3.3605 per pound.

The US Federal Reserve held the key interest rate unchanged at the record low level and spoke in monetary policy statement about potential future hardships that the US economy may face. Commodities, including copper and oil, reacted negatively to the dovish statement.

The Fed left the federal funds rate near zero and announced the plan to buy $400 billion of long-term securities. The central bank said “there are significant downside risks to the economic outlook”.

The Standard & Poor’s 500 Index slumped 2.9 percent, while the Standard & Poor’s GSCI Index dropped 1.6 percent to 628.17, the lowest intra-day level since August 19. The MSCI Asia Pacific Index tumbled as much as 3.2 percent.

The contract for delivery of copper in three months dropped 3.2 percent to $8,036.25 per metric ton on LME, the lowest price since November 17. November futures for delivery of crude oil slid $1.77 to $84.15 per barrel in electronic trading on NYMEX.

The sentiment on markets was pessimistic today. As a result prices for copper and oil fell, while gold gained.

Concerns about the crisis in the European Union intensified after German economist Juergen Stark resigned from the European Central Bank’s Executive Board today, leading to the speculation Germany will increase opposition to bailing out Greece. Traders also speculate that Greece may be forced to leave the Eurozone. US President Barack Obama spoke today, but failed to ease worries about the state of the US economy.

The MSCI All-Country World Index and the Standard & Poor’s 500 Index both dropped as much as 3.1 percent.

October futures for delivery of crude oil fell $1.81 to $87.24 per barrel on NYMEX. December futures for delivery of copper slid $0.141 (3.4 percent) to $4.0025 per pound by 13:00 on COMEX. December contract for delivery of gold advanced $2 (0.1 percent) to $1,859.50 per ounce as of 13:49 in New York.

Crude oil gained today on concerns that the disturbance in the Gulf of Mexico would turn into a tropical cyclone. The output from the region has already declined by about 36.9 percent for and 18.1 percent for natural gas. Analysts expect that the report tomorrow will show that US inventories of crude decrease by 2 million barrels last week. October futures for delivery of crude oil gained $3.32 to $89.34 per barrel on NYMEX, posting the biggest advance since August 10.

Gold slipped today as gains of stocks reduced demand for metal as a safe haven and prompted traders to take profit from record prices. The Standard & Poor’s 500 Index surged 2.7 percent and the MSCI All-Country World Index jumped as much as 2.8 percent. The precious metal also retreated after the dollar climbed to the highest level in more than a month against the basket of six major currencies. December futures for delivery of gold retreated $55.70 (3 percent) to $1,817.60 per ounce as of 13:25 on COMEX. December futures for silver slipped $0.237 (0.6 percent) to $41.631 per ounce.

Gold rebounded today as global equities slumped. Earlier, the precious metal was heading to the biggest drop since 2008.

European regulators extended the temporal ban on short selling, driving stocks down and bolstering demand for precious metals. The MSCI World Index of stocks fell 1.4 percent. The Standard & Poor’s 500 Index slid 1.8 percent. Rising unemployment claims in the US and falling consumer confidence in Germany also benefited gold.

December futures for delivery of gold added $5.50 (0.3 percent) to $1,762.80 per ounce as of 13:25 on COMEX. Earlier, the metal dropped as much as 3 percent to $1,705.40 and was heading to the biggest decline in three days since October 2008.

This week was marked by somewhat pessimistic sentiment among investors. Gold, as result, rallied to new highs, posting the seventh straight weekly gain. Crude oil, reacting to pessimism of traders, ended the week with losses, making it the fourth weekly drop.

Concerns about the debt crisis in Europe still persist as the European leaders are unable to reach agreement even after many meetings on this matter. The economy of the US also gave enough reasons for traders to be worried. The resulting uncertainty had its negative impact on other economies across the world. The MSCI All-Country World Index of equities dropped 1.7 percent, heading for the fourth consecutive weekly decline as Morgan Stanley cut estimates for the global growth.

December futures for gold delivery rose $30.20 (1.7 percent) to $1,852.20 as of 13:42 on COMEX after reaching the all-time high of $1,881.40. September contract for crude oil delivery fell $0.12 to $82.26 per barrel on NYMEX, the lowest price since August 9.

Gold rallied today above $1,800 as global stocks slumped amid concerns about the economies of Europe and the United States. The MSCI World Index of shares plunged to the lowest level since September. December futures for delivery of gold jumped as much as $43.80 (2.5 percent) to $1,786.80 by 12:34 on COMEX. The metal reached the record $1,801 intraday.

Crude oil rose today despite the nervousness on markets after the US stockpiles unexpectedly declined. The inventories slipped by 5.2 million barrels from the previous week, while an increase by 1.7 million barrels was anticipated. Crude also advanced after the Federal Reserve pledged to bolster the US economy. September futures for delivery of crude oil advanced $1.88 (2.4 percent) to $81.18 per barrel as of 10:35 on NYMEX.

Most commodities declined today, reacting to the downgrade of the US credit rating by Standard & Poor’s on Friday, while gold posted a new record, rising above $1,700.

All three major agencies (Moody’s Investor Service, Fitch Ratings and Standard & Poor’s) signaled about possible downgrade of the US credit rating in the future, while S&P actually cut the rating one step to AA+ and kept the outlook on ”negative”. This move erased any optimism that had remained on markets and caused a drop of most commodities. Gold, on the other hand, took its chance and jumped to yet another record.

The MSCI All-Country World Index of stocks dropped 1.1 percent. The S&P GSCI index of 24 commodities fell as much as 2.8 percent.

December futures for delivery of gold gained $49.90 (3 percent) to $1,701.70 per ounce as of 9:06 on COMEX after earlier it reached the all-time high of $1,718.20. Futures for delivery of corn in December fell 14 cents (2 percent) to $6.8775 per bushel at 10:16 on CBoT. Contract for delivery of soybeans in November went down $0.2025 (1.5 percent) to $13.1575 per bushel. September contract for for delivery of crude oil slipped as much as $3.28 (3.8 percent) to $83.60 per barrel by 11:43 on NYMEX.

Crude oil rebounded today as the economic data from the US and the rally of equities caused speculation that demand will increase because of improving economy. The improving prospects for the global growth also helped gold as faster growth can lead to increasing inflation.

The US retail sales decreased less than predicted, while PPI rose above forecast last month. China’s industrial production and consumer price index grew. The Standard & Poor’s 500 Index and the MSCI All-Country World Index gained.

July futures for crude oil delivery rose as much as $2.07 to $99.37 per barrel on NYMEX. July Brent oil advanced$1.06 (0.9 percent) to $120.16 per barrel on ICE. August futures for gold delivery climbed $8.80 (0.6 percent) to $1,524.40 by 13:55 on COMEX.

The negative influence of the faltering global recovery and the debt situation in Europe were felt today on markets. Oil was down on the speculation that the weaker economy will lead to weaker demand. Meanwhile, gold also slipped as traders were selling the precious metal to cover losses from the slump of commodities.

The MSCI All-Country World Index of stocks reached the lowest level in more than two months. The Standard & Poor’s 500 Index was falling for six consecutive weeks.

Contract for delivery of crude oil in July dropped $0.66 to $98.63 per barrel in electronic trading on NYMEX. August futures for gold delivery retreated $13.60 (0.9 percent) to $1,515.60 by 13:53 on COMEX.

Nickel fell today on the speculation that the metal may have a biggest surplus in four years. Bank of America Merrill Lynch predicted that nickel’s surplus may reach 60,000 metric tons in 2012 from 12,000 tons this year. Nickel traded at $22,283 per metric ton as of 16:46 on LME. The metal dropped 10 percent this year and analysts think that it may fall by another 10 percent to $20,000 per ton.