Market Factors to Watch | Tuesday, 11 March - TopicsExpress

Market Factors to Watch | Tuesday, 11 March 2014 ==================================== GLOBAL MARKETS ==================================== • CHINA — Investors are closely eyeing Chinese money markets and the yuan for any evidence the Peoples Bank of China (PBOC) is engineering an easing in monetary conditions after it forced the currency sharply lower on Monday. • RUSSIA — Tensions between Russia and Ukraine also added to investor unease. In Crimea, unidentified armed men fired in the air as they moved into a Ukrainian naval post. Russia said the United States had spurned an invitation to hold new talks on resolving the crisis. • US MARKETS — US stocks dipped on Monday, weighed down by soft data out of China and Boeings latest production setback but Wall Street manage to pare losses. The Dow Jones industrial average ended off 0.21 percent to 16,418.68, while the S&P 500 lost just 0.05 percent to 1,877.17 and the Nasdaq Composite dropped 0.04 percent, to 4,334.45. The S&P 500 had closed at a record of 1,878.04 on Friday. • US TREASURIES — US Treasuries prices were roughly unchanged on Monday ahead of US government debt auctions this week that are expected to attract buyers after a drop in benchmark bond prices. US 10-year Treasury yields eased a single basis point to 2.78 percent. • FOREX — Forex markets were surprisingly calm with the US dollar barely changed against a basket of major currencies. Even currencies from major resource exporters incurred only modest losses. The Australian dollar, often used as a liquid proxy for Chinese risk, came off half a US cent but found solid support around $0.9025. The euro held steady at $1.3876, as was the dollar at 103.26 yen. • GOLD — Gold prices were little changed on Monday as disappointing Chinese export data helped underpin the market, with bullion investors closely monitoring the latest development in the standoff in Ukraine between Russia and the West. Spot gold inched down 5 cents to $1,339.80 an ounce by 2:45 p.m. EDT (1845 GMT) while US COMEX gold futures for April delivery settled up $3.30 an ounce at $1,341.50, with trading volume in line with its 30-day average, preliminary Reuters data showed. • OIL — Crude oil slipped below $108 a barrel on Monday as an unexpected fall in Chinas exports stoked fears of a slowdown in the worlds No. 2 economy, though political tensions in Ukraine and Libya limited the decline. Oil and industrial commodities bore the brunt of the sell-off. Brent crude lost 92 cents to $108.08, while US oil extended its decline to $100.94 a barrel. • NIKKEI — The benchmark Nikkei closed down 1 percent at 15,120.14 in thin trading volume on Monday as disappointing Chinese trade data and uncertainty over the crisis in Ukraine prompted investors to lock in recent gains. Although the US nonfarm payrolls report released on Friday was surprisingly strong, it provided limited support because it also cemented expectations of a further reduction in US monetary stimulus. Data released on Saturday showed Chinese exports unexpectedly tumbled in February, swinging the trade balance into deficit and adding to fears of a slowdown in China, one of Japans biggest export markets. ==================================== MALAYSIA ==================================== • PALM OIL — The benchmark Malaysian palm oil futures for May contract on Bursa Malaysia Derivatives Exchange rose 0.7 percent to close at 2,905 ringgit ($885) per tonne on Monday. Prices earlier hit 2,910 ringgit, their highest since Sept. 14, 2012 after an industry report showed that stocks in the worlds No 2 producer fell to an eight-month low as dry weather hindered output. The Malaysian Palm Oil Board (MPOB) on Monday reported that Malaysias February palm oil stocks dropped to 1.66 million tonnes, their lowest level since June, from 1.94 million tonnes the month before. Market participants had estimated stocks would fall to 1.79 million tonnes. Dry and hazy conditions in Malaysia and top producer Indonesia have interrupted growth of fresh fruit bunches, curbing yields and squeezing palm oil supplies. Meanwhile, cargo surveyor Intertek Testing Services (ITS) reported that Malaysian palm oil exports in the first 10 days of March fell 5 percent to 293,879 tonnes as top buyers and price-sensitive India and China cut back purchases. Another cargo surveyor, Societe Generale de Surveillance, showed that exports for the same period fell 3.7 percent. • COMPETING VEGOIL — The US soyoil contract for May rose 0.3 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange dropped 0.3 percent. • FBM KLCI — Worries about a slowdown in Chinas economy battered key Asian markets and Malaysian equities, sending all the key indices into the red. At Monday’s close, the FBM KLCI was down 10.2 points or % to 1,822.06. Meanwhile, he ringgit also weakened against the US dollar to 3.2833 from the previous close of 3.2578. Malaysia Airlines was in spotlight as families and authorities await news following the disappearance of Flight MH730 on Saturday. MAS fell one sen to 24 sen with 385 million shares done. It fell to an early low of 20.5 sen. ==================================== CLOSING PRICES FOR US MARKET Monday, 10 March 2014 ==================================== • DJIA Down 34.04 points at 16,418.68 • NASDAQ Down 1.77 points at 4,334.45 • S&P 500 Down 0.87 points at 1,877.17 • US Soybean Oil (May 14) Down -0.46 points at 43.86 dollars per metric ton. • NYMEX Light Sweet Crude Oil (WTI) (Apr 14) Down -1.46 points at 101.12 dollars a barrel. • US COMEX Gold (Apr 14) Up +3.3 points at 1341.5 dollars an ounce. ==================================== CLOSING PRICES FOR CHINA MARKET Monday, 10 March 2014 ==================================== • DALIAN SOYBEAN (Sep 14) closed down 101 at 4367 • DALIAN SOYBEAN OIL (Sep 14) closed down 84 at 7104 • DALIAN PALM OIL (Sep 14) closed down 50 at 6364 ==================================== CLOSING PRICES FOR MALAYSIA MARKET Monday, 10 March 2014 ==================================== • FGLD (March 14) closed down 0.40 at 141.15 • FGLD (April 14) close down 0.40 at 141.50 • FCPO (May 14) closed up 15 at 2,901 • FKLI (March 14) closed down 12.5 at 1,820.5 • FBM KLCI closed down 10.20 points at 1,822.06