Market Factors to Watch | Monday, 04 November 2013 ==================================== GLOBAL MARKETS ==================================== • U.S. STOCKS — U.S. stocks rose on Friday after surprisingly strong manufacturing data overshadowed expectations that the Federal Reserve might reduce stimulus earlier than expected. The Dow Jones industrial average and the S&P 500 rose for the week as well, their fourth straight week of gains. Factory activity expanded around the world, several business surveys showed, with Chinese manufacturers reporting the fastest upturn in 18 months. The Institute for Supply Management (ISM) said on Friday its index of U.S. factory activity rose to 56.4 in October, its best reading since April 2011. While the news underscored views that the Federal Reserve may be considering scaling back its stimulus sooner than some market participants have been expecting, it also gave investors surprising evidence of the manufacturing sectors strength. Although the three major U.S. stock indexes ended Fridays session with modest gains, the markets breadth was negative. Decliners outnumbered advancers by a ratio of 8 to 7 on the New York Stock Exchange, while on the Nasdaq, three stocks fell for every two that rose. • U.S. TREASURIES — U.S. Treasuries prices fell on Friday as an encouraging report on domestic manufacturing indicated the economy overcame a drag from a government shutdown in October, which spurred selling in bonds for a third consecutive session. The Institute for Supply Management said its index on national manufacturing activity unexpectedly edged up to 56.4 points in October, a 2-1/2 year peak. Analysts had projected a modest decline to 55.0 from 56.2 in September. The bond market started the first trading day in November on a sour note with benchmark yields rising to their highest levels in 1-1/2 weeks. The Treasuries sector earned 0.48 percent in total returns in October, reducing its year-to-date loss to 1.54 percent, according to an index compiled by Barclays. But it lagged other higher-yielding U.S. bonds. • FOREX — The euro fell for a fifth day against the dollar on Friday, heading for its biggest weekly loss in 16 months, on growing expectations the European Central Bank will ease monetary policy further to protect growth. More losses are likely as traders said the single currencys climb in recent months was overdone. The euro hit a 23-month high above $1.38 last Friday, a gain of more than 8 percent from early July. Plunging euro zone inflation is raising the specter of deflation in some areas and fueling bets the ECB will be forced to ease monetary policy in coming months. The euro at current levels is poised to end the week 2.3 percent lower, the largest weekly loss since early July. The dollar rose 0.4 percent to 98.76 yen and was on track for a weekly gain of 1.4 percent, the best weekly performance since mid-July. The euros losing streak against the greenback marked its longest stretch in two months. It also fell 0.3 percent to 133.19 yen. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.7 percent to its highest since mid-September at 80.729, far above a nine-month trough of 78.998 plumbed a week earlier. The dollar rallied after the Federal Open Market Committee, the Federal Reserves policy-making arm, on Wednesday dropped a phrase from its September meeting that noted tight financial conditions. • GOLD — Gold fell about 1 percent on Friday, posting its biggest weekly loss in seven weeks, as renewed anxiety about the U.S. Federal Reserve could scale back its bond-buying stimulus prompted bullion investors to reduce positions. The precious metal was down 3 percent for the week, reversing two consecutive weekly gains. Richmond Fed President Jeffrey Any sign that the Fed will reduce its $85 billion monthly bond-buying program is likely to weigh heavily on gold prices. Funds and institutional investors have in recent years bought gold as a hedge against inflation and monetary actions by central banks. Spot gold was down 0.9 percent at $1,311.50 an ounce by 2:57 p.m. EDT (1857 GMT), extending Thursdays 1.4 percent slide. Spot gold has ended lower every day this week. U.S. Comex gold futures for December settled down $10.50 to $1,313.20 an ounce, with trading volume about 20 percent below its 30-day average, preliminary Reuters data showed. • BRENT — Brent oil fell sharply on Friday, tumbling by nearly $3 a barrel, and settling at its lowest point since early July, narrowing its premium to U.S. crude in heavy selling. Traders shrugged off Libyas oil supply outage and instead focused on a strong dollar and a supply overhang that set an overall bearish market tone. U.S. crude oil futures sank to the lowest since June, while Brent ended with its largest daily percentage loss also since June. Brents steeper losses narrowed its premium over WTI CL-LCO1=R by $1.16 from Thursdays close, after it hit a seven-month high of $13.60 in the previous session. Brent crude for December delivery settled down $2.93 at $105.91 a barrel, a loss of 2.7 percent, its largest daily percentage loss since June 20. The last time Brent settled lower was on July 4 at $105.54. U.S. oil for December fell $1.77 to settle at $94.61, posting a fourth straight week of losses and its longest losing streak since June 2012. It was the lowest settlement price for the U.S. contract since June 21 at $93.69. • NIKKEI — The Nikkei fell 0.9 percent to 14,201.57 points on Friday, reversing earlier gains and adding to Thursdays 1.2 percent slide. Still, the benchmark was up 0.8 percent this week and is up 37 percent year-to-date. ==================================== MALAYSIA ==================================== • PALM OIL — Malaysian palm oil futures briefly rose to a fresh one-year high on Friday, as strong Asian demand coupled with lower production expectations supported prices. By midday, the benchmark January contract on the Bursa Malaysia Derivatives Exchange traded 0.2 percent higher at 2,599 ringgit ($820) per tonne. Earlier, benchmark prices rose to 2,603 ringgit, its highest level since Oct. 25, 2012, and have gained about 7 percent for the year to date. Total traded volume stood at 16,574 lots of 25 tonnes each, above the usual 12,500 lots. Technical showed Malaysian palm oils bullish target of 2,630 ringgit per tonne remains unchanged, based on its wave pattern and a Fibonacci projection analysis • COMPETING VEGOIL — In competing vegetable oil markets, the U.S. soyoil contract for December rose 0.4 percent in early Asian trade. The most-active May soybean oil contract on the Dalian Commodities Exchange gained slightly. • FBM KLCI — The FBM KLCI, which opened in the red, pared loses to settle for a 0.2% gain from oil and gas (O&G) counters on Friday. At 5.00pm, the benchmark index rose 3.56 points to 1810.41, led by heavyweights like Sapurakencana Petroleum Bhd and Genting Malaysia Bhd. The KLCI had earlier in the morning dropped to a low of 1,801.69. Areca Capital CEO Danny Wong said investors are keen on O&G counters as Petroliam Nasional Bhd (Petronas) would be handing out new contracts to local companies. ==================================== CLOSING PRICES FOR U.S. MARKET Monday, 04 November 2013 ==================================== • DJIA Up 69.80 points at 15,615.55 • NASDAQ Up 2.34 points at 3,922.04 • S&P 500 Up 5.10 points at 1,761.64 • US Soybean Oil [Dec’13] Up 0.26 points at 41.59 dollars per metric ton • NYMEX Light Sweet Crude Oil (WTI) [Dec’13] Down -1.77 points at 94.61 dollars a barrel • US COMEX Gold [Dec’13] Down -10.5 points at 1313.2 dollars an ounce ==================================== CLOSING PRICES FOR CHINA MARKET Monday, 04 November 2013 ==================================== • DALIAN SOYBEAN (May 14) up 14 at 4481 • DALIAN SOYBEAN OIL (May 14) up 90 at 7302 • DALIAN PALM OIL (May 14) closed up 74 points at 6374 ==================================== CLOSING PRICES FOR MALAYSIA MARKET Monday, 04 November 2013 ==================================== • FCPO (Jan 14) closed up 51 at 2,598 • FKLI (Oct 13) closed down 15.5 at 1,806.5 • FBM KLCI down 10.53 points to close at 1,806.85 • FGLD (Oct 13) closed down 1.50 at 135.25 • FGLD (Dec 13) closed down 1.05 at 136.40 • FCPO (Jan 14) closed up 30 at 2,623 • FKLI (Nov 13) closed up 5.0 at 1,813.0 • FBM KLCI up 3.56 points to close at 1,810.41 • FGLD (Nov 13) closed down 1.35 at 134.50 • FGLD (Dec 13) closed down 1.40 at 135.00
Posted on: Mon, 04 Nov 2013 03:14:04 +0000
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