Market Commentary
Oil Falls as China Industrial Growth Slows.
Oil dropped as China’s industrial production trailed estimates and after Saudi Arabian crude output climbed from a 20-month low last month. Futures in New York fell as much as 1.2 percent after Chinese government data showed the world’s second-biggest oil- consuming nation started the year with the weakest industrial growth since 2009. Saudi Arabia’s crude production increased, according to an official with knowledge of the country’s oil policy. The fall in crude accelerated as gasoline retreated. “Disappointment about the Chinese economic news is putting some downward pressure on the oil market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford,Connecticut. “WTI can be expected to consolidate between $90 and $92. If the Saudi production gain is confirmed, we should see further downward pressure on the market.” Crude oil for April delivery fell 89 cents, or 1 percent, to $91.06 a barrel at 10:46 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 25 percent below the 100-day average. Futures are down 1.1 percent this month. Brent oil for April settlement dropped 98 cents, or 0.9 percent, to $109.87 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded today was 51 percent above the 100-day moving average. The European benchmark was at an $18.81 premium to WTI. The gap narrowed to $18.90 on March 8, the least since Jan. 31. China’s industrial output expanded 9.9 percent in January and February, according to the government figures. That’s lower than a 10.6 percent median estimate in a Bloomberg survey. Retail sales also slowed in the period and new local-currency loans were down in February, separate data showed.
Gold Swings as Investors Weigh U.S. Growth Against Europe Crisis.
Gold swung between gains and losses as investors weighed data showing an improving U.S. economy against signs that Europe’s debt crisis is continuing. The Dow Jones Industrial Average reached an all-time high last week and the dollar traded near a seven-month high against six counterparts on signs that the U.S. economy is strengthening. Fitch Ratings cut Italy’s credit rating by one level on March 8. Gold exchange-traded holdings fell for a fourth straight week. Gold futures for April delivery climbed 0.1 percent to $1,579.10 an ounce at 10:50 a.m. on the Comex in New York. The metal gained as much as 0.4 percent and fell as much as 0.2 percent today. Last week, prices rose 0.3 percent, the first advance in five. Trading volume was 46 percent below the average in the past 100 days for this time of day. Gold is down 5.8 percent this year, after 12 straight annual gains, on mounting confidence that economies are recovering. U.S. payrolls rose and the jobless rate declined in February, the Labor Department said March 8. Holdings in bullion-backed exchange-traded funds fell to 2,484.1 metric tons on March 8, the lowest since September, data compiled by Bloomberg show. Silver futures for May delivery slid 0.4 percent to $28.84 an ounce on the Comex.
Copper Set for First Weekly Gain in Four on Growth Optimism.
Copper is poised for the first weekly gain in four after exports by China, the top user of the industrial metal, grew by more than expected, adding to signs of the global economic recovery. Zinc and lead also rose. The metal for delivery in three months climbed as much as 0.2 percent to $7,783 a metric ton on the London Metal Exchange and was at $7,775. The price is up 0.9 percent this week. China’s exports rose 21.8 percent last month from a year earlier, beating the 8.1 percent-gain median in a Bloomberg News survey. European Central Bank President Mario Draghi yesterday said data suggest the economy will stabilize this year and U.S. jobless claims unexpectedly dropped. Goldman Sachs Group Inc. said yesterday it is bullish on copper as home building in China and the U.S. will drive demand. The Asian nation’s construction sector accounts for 20 percent of global demand, according to the bank. Copper analysts are the most bullish in five weeks because of mounting optimism the global economy is strengthening, a Bloomberg survey shows. Thirteen analysts expect prices to rise next week. Four forecast declines and three were neutral. China’s copper imports tumbled to the lowest level in 20 months as a week-long holiday slowed customs procedures. Inbound shipments of refined metal, alloy and products were 298,102 tons last month, the General Administration of Customs said today. That compares with 351,000 tons in January and 484,569 tons a year ago, show data compiled by Bloomberg. Futures for June delivery rose 0.4 percent to close at 56,740 yuan ($9,122) a ton on the Shanghai Futures Exchange. Futures for delivery in May traded little changed at $3.5245 a pound on the Comex in New York
Oil Falls as China Industrial Growth Slows.
Oil dropped as China’s industrial production trailed estimates and after Saudi Arabian crude output climbed from a 20-month low last month. Futures in New York fell as much as 1.2 percent after Chinese government data showed the world’s second-biggest oil- consuming nation started the year with the weakest industrial growth since 2009. Saudi Arabia’s crude production increased, according to an official with knowledge of the country’s oil policy. The fall in crude accelerated as gasoline retreated. “Disappointment about the Chinese economic news is putting some downward pressure on the oil market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford,Connecticut. “WTI can be expected to consolidate between $90 and $92. If the Saudi production gain is confirmed, we should see further downward pressure on the market.” Crude oil for April delivery fell 89 cents, or 1 percent, to $91.06 a barrel at 10:46 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 25 percent below the 100-day average. Futures are down 1.1 percent this month. Brent oil for April settlement dropped 98 cents, or 0.9 percent, to $109.87 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded today was 51 percent above the 100-day moving average. The European benchmark was at an $18.81 premium to WTI. The gap narrowed to $18.90 on March 8, the least since Jan. 31. China’s industrial output expanded 9.9 percent in January and February, according to the government figures. That’s lower than a 10.6 percent median estimate in a Bloomberg survey. Retail sales also slowed in the period and new local-currency loans were down in February, separate data showed.
Gold Swings as Investors Weigh U.S. Growth Against Europe Crisis.
Gold swung between gains and losses as investors weighed data showing an improving U.S. economy against signs that Europe’s debt crisis is continuing. The Dow Jones Industrial Average reached an all-time high last week and the dollar traded near a seven-month high against six counterparts on signs that the U.S. economy is strengthening. Fitch Ratings cut Italy’s credit rating by one level on March 8. Gold exchange-traded holdings fell for a fourth straight week. Gold futures for April delivery climbed 0.1 percent to $1,579.10 an ounce at 10:50 a.m. on the Comex in New York. The metal gained as much as 0.4 percent and fell as much as 0.2 percent today. Last week, prices rose 0.3 percent, the first advance in five. Trading volume was 46 percent below the average in the past 100 days for this time of day. Gold is down 5.8 percent this year, after 12 straight annual gains, on mounting confidence that economies are recovering. U.S. payrolls rose and the jobless rate declined in February, the Labor Department said March 8. Holdings in bullion-backed exchange-traded funds fell to 2,484.1 metric tons on March 8, the lowest since September, data compiled by Bloomberg show. Silver futures for May delivery slid 0.4 percent to $28.84 an ounce on the Comex.
Copper Set for First Weekly Gain in Four on Growth Optimism.
Copper is poised for the first weekly gain in four after exports by China, the top user of the industrial metal, grew by more than expected, adding to signs of the global economic recovery. Zinc and lead also rose. The metal for delivery in three months climbed as much as 0.2 percent to $7,783 a metric ton on the London Metal Exchange and was at $7,775. The price is up 0.9 percent this week. China’s exports rose 21.8 percent last month from a year earlier, beating the 8.1 percent-gain median in a Bloomberg News survey. European Central Bank President Mario Draghi yesterday said data suggest the economy will stabilize this year and U.S. jobless claims unexpectedly dropped. Goldman Sachs Group Inc. said yesterday it is bullish on copper as home building in China and the U.S. will drive demand. The Asian nation’s construction sector accounts for 20 percent of global demand, according to the bank. Copper analysts are the most bullish in five weeks because of mounting optimism the global economy is strengthening, a Bloomberg survey shows. Thirteen analysts expect prices to rise next week. Four forecast declines and three were neutral. China’s copper imports tumbled to the lowest level in 20 months as a week-long holiday slowed customs procedures. Inbound shipments of refined metal, alloy and products were 298,102 tons last month, the General Administration of Customs said today. That compares with 351,000 tons in January and 484,569 tons a year ago, show data compiled by Bloomberg. Futures for June delivery rose 0.4 percent to close at 56,740 yuan ($9,122) a ton on the Shanghai Futures Exchange. Futures for delivery in May traded little changed at $3.5245 a pound on the Comex in New York
