Market Factors to Watch | Wednesday, 20 November 2013 ==================================== GLOBAL MARKETS ==================================== • U.S. STOCKS — U.S. stocks fell on Tuesday, with the Dow and the S&P 500 retreating further from milestone levels, led by a slide in Best Buy after a disappointing outlook. Cautious forecasts from Best Buy and Campbell Soup Co gave investors a reason to sell some stocks. Best Buy shares slid 11 percent to close at $38.78, while Campbell Soup fell 6.2 percent to $39.21. The Dow briefly rose above 16,000 but failed to close above that level for the second day. The S&P 500 retreated further from the 1,800 level it hit on Monday. Despite the two-day decline, the S&P 500 is still up about 25 percent for the year. The benchmark index is on track for its biggest yearly gain since 2003. • U.S. TREASURIES — U.S. Treasury debt prices slipped on Tuesday, pressured by a large global supply calendar and a rise in a German investor sentiment index. German analyst and investor sentiment beat expectations in November, rising to its highest in four years, helped by a slightly improved economic outlook for the euro zone, a survey showed on Tuesday. The U.S. third-quarter employment cost index showed that U.S. labor costs rose just 0.4 percent in the third quarter, data that argued for stimulative monetary policy. • FOREX — The dollar dropped against the euro on Tuesday in choppy trading after Chinas central bank said it would gradually exit from regular intervention in the foreign exchange market. But analysts said over the medium term, the dollar is still expected to perform better than the euro and yen as the Federal Reserve prepares to wind down its massive economic stimulus, a process that many expect will get under way in March next year. The market, meanwhile, digested news that Zhou Xiaochuan, head of the Peoples Bank of China, said in a book on reforms published on Tuesday that China will gradually expand the yuan trading band to help make the currency more flexible and market-driven. This follows reform plans last week to let the market play a decisive role in the Chinese economy. The PBOC comments spurred some modest dollar selling, as the widening of the Chinese trading band meant the yuan would strengthen against the dollar. But analysts said the remarks dont mean that China will move the trading band overnight. It could happen though over the next five years. Against the yen, the dollar rose 0.2 percent to 100.14 yen. • GOLD — Gold prices were little changed on Tuesday, stabilizing after Mondays sharp losses, as investors looked forward to the minutes of the Feds October meeting for clues about future monetary policy. Spot gold was up 0.1 percent at $1,274.44 an ounce by 3:05 p.m. EST (2005 GMT), after Mondays 1.2 percent drop. U.S. gold futures for December delivery settled up $1.20 at $1,273.50 an ounce, with trading volume about 40 percent below its 250-day average. • BRENT — Brent slipped towards $108 a barrel on Tuesday as investors eyed this weeks round of talks between world powers and Iran that could lead to an easing of sanctions on the oil-rich country. Renewed concern about the possible tightening of monetary policy in the United States further undercut prices. January Brent crude fell 15 cents to $108.132 a barrel by 0925 GMT, down for the third straight session. U.S crude for December edged down 11 cents to $92.92. • NIKKEI — Japans Nikkei share average retreated from six-month highs on Tuesday as financials took a breather after their recent earnings-led rally, while uncertainty on when the U.S. central bank will start tapering its stimulus crimped demand. The Nikkei dropped 0.3 percent to 15,126.56, moving away from 15,273.61 hit on the previous day, the highest since May 23 when it reached a 5-1/2 year high of 15,942.60. ==================================== MALAYSIA ==================================== • PALM OIL — Malaysian palm oil futures edged down to their lowest in a week on Tuesday as investors chose to avoid risky bets ahead of industry reports on export demand at the worlds second-largest producer. prices were also consolidating from big gains last week, after a typhoon in the Philippines threatened an edible oil shortage in the region. Market players are waiting for more information on export demand from cargo surveyor reports, due on Wednesday that will show shipments of Malaysian palm oil in the Nov. 1-20 period. By Tuesdays close, the benchmark February contract on the Bursa Malaysia Derivatives Exchange had lost 1.4 percent to 2,556 ringgit ($806) per tonne. Prices earlier dropped to 2,552 ringgit, the lowest since Nov. 12, and were locked between 2,552 ringgit and 2,586 ringgit. • COMPETING VEGOIL — In competing vegetable oil markets, the U.S. soyoil contract for December was flat in late Asian trade. The most active May soybean oil contract on the Dalian Commodities Exchange fell 0.6 percent. • FBM KLCI — The FBM KLCI rose 0.97% at the midday break on Tuesday, lifted by gains including at index-linked plantation counters, in line with the advance at most regional markets. At 12.30pm, the FBM KLCI rose 17.47 points to 1,809.86. Gainers led losers by 370 to 287, while 331 counters traded unchanged. Volume was 972.15 million shares valued at RM969.67 million. The top gainers in the morning session included KLK, Petronas Gas, BAT, MISC, P.I.E, Sime Darby, IOI Corp and PPB. MAS was the most actively traded counter with 102.5 million shares done. The stock fell two sen to 32.5 sen. The other actives included TMS, Utopia, Sumatec, Instaco, Tiger Synergy, China Stationery and SMPC. ==================================== CLOSING PRICES FOR U.S. MARKET Tuesday, 19 November 2013 ==================================== • DJIA Down Down 8.99 points at 15,967.03 • NASDAQ Up Down 17.51 points at 3,931.55 • S&P 500 Down 3.66 points at 1,787.87 • US Soybean Oil [Dec’13] Down -0.12 points at 39.99 per metric ton • NYMEX Light Sweet Crude Oil (WTI) [Dec’13] Up 0.31 points at 93.34 a barrel • US COMEX Gold [Dec’13] Up 1.2 points at 1273.5 dollars an ounce ==================================== CLOSING PRICES FOR CHINA MARKET Tuesday, 19 November 2013 ==================================== • DALIAN SOYBEAN (May 14) down 31 at 4457 • DALIAN SOYBEAN OIL (May 14) down 44 at 7156 • DALIAN PALM OIL (May 14) closed down 40 points at 6216 ==================================== CLOSING PRICES FOR MALAYSIA MARKET Tuesday, 19 November 2013 ==================================== • FCPO (Feb 14) closed down 37 at 2,555 • FKLI (Nov 13) closed up 14.0 at 1,809.0 • FBM KLCI up 14.77 points to close at 1,807.16 • FGLD (Nov 13) closed down 1.65 at 130.10 • FGLD (Dec 13) closed down 1.65 at 130.50
Posted on: Wed, 20 Nov 2013 01:52:13 +0000
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