Asian stocks upbeat on PMI data

Monday, September 01, 2014

Asian stocks managed to start the week on a positive note as both the official PMI and HSBC’s final PMI reading came in largely in line with expectations. Benchmark stocks across the region were well supported despite both readings posting 0.1 points below consensus estimates, coming in at 51.1 and 50.2 for the official and HSBC final reading respectively. Markets are expected to trade tentatively today as tensions in Europe remain high after comments from Putin outlined Russia’s interest regarding ‘statehood’ talks for south-east Ukraine.

Spot gold prices were well supported above the 200 day MA early on this morning on geopolitical tensions, resuming the previous week’s gains after Friday’s brief sell-off. Interest in the yellow metal has seen sharp price swings over the past few months, however, activity remains rangebound and with net long positions declining 21% to 92,734 contracts according to the latest CFTC report which was the largest decline since June 3rd we could see near term support levels give way to short term price declines if the fundamental situation remains weak.

Palladium prices approached a 13 year high with prices this morning on track to close higher for the fourth straight session as spot prices approached $910/oz. The threat of further sanctions against Russia, the largest producer of the metal, prompted concern among investors that supply could be disrupted with the recent rally in late August adding to the 28% year-to-date gains. Investors will be closely watching the tense political situation between Russia and Ukraine with any escalation of intervention by western powers offering the potential for further upside in palladium prices.

Spot gold prices hold firm above the 200 day MA

XAU Curncy Gold Spot Oz D 2014 09 01 08 18 47 

Palladium prices rally higher on Russia tensions

XPD Curncy Palladium Spot Oz 2014 09 01 08 20 44

Events for today

US Market Holiday 

0001

UK

Aug

Nationwide House Prices

0001

UK

Aug

Halifax House Prices

0030

JP

Aug

Manufacturing

0245

CN

Aug

Manufacturing PMI

0245

CN

Aug

HSBC Manufacturing PMI

0700

DE

Q2

GDP

0700

DE

Q2

Imports/Exports

0855

DE

Aug

Markit Manufacturing PMI

0900

EZ

Aug

Markit Manufacturing PMI

0930

UK

Jul

Consumer Credit

Topics: Gold, PMI, Palladium
More from: Kash Kamal