Uncertainty sees stocks drift lower

Friday, March 28, 2014

US stocks were unable to hold on to current levels yesterday as mixed economic data and continued uncertainty surrounding Ukraine kept many investors side-lined. Both the S&P 500 and DJIA ended the session on the back foot despite trying to test higher levels throughout the day. Despite the cautious tones, Asian benchmark indices managed to post steady gains with H-shares adding over 3% this week after stronger corporate earnings from automakers and banks eased concerns growth was slowing. Japan’s TOPIX also posted steady gains, snapping a two week decline as investors took advantage of the recent dip

Front month raw sugar futures rallied higher for the fourth consecutive session on a combination of seasonal demand and continued uncertainty surrounding the drier weather in Brazil. The shifting sentiment prompted spec longs back into the market after the recent sell-off which saw prices pull back from the recent high of 18.47c/lb towards 16.67c/lb provided a buying opportunity. Prices closed up 2.11% yesterday at 17.87c/lb.

Three month LME copper prices moved above $6,600/tonne for the first time in three weeks, with prices on track for a second consecutive week of gains. Speculation that Chinese demand may improve and tightening fundamentals from concerns of lower mine supply offered support to the red metal after the recent rout. Near term resistance around $6,650 will be targeted provided upward momentum holds firm while on the downside immediate support towards $6,550 will be tested on any dips.

Spot gold prices closed 1% lower yesterday as signs of a recovery in the US escalated the sell-off which has seen price soften almost 7% from their mid-March peak. Prices this morning have retraced some of yesterday’s losses, trading towards $1,298/oz as investors take advantage of buying opportunities on any dip below $1,300.

#11 front month sugar futures extend gains after the recent sell-off  

SB1 Comdty Generic 1St SB Fut 2014 03 28 07 18 22

Three month LME copper prices push higher on demand optimism

LMCADS03 Comdty LME COPPER 3 2014 03 28 07 51 36


Events for today

1000

EZ

Mar

Bus Climate & Con Sentiment

1355

US

Mar

University of Michigan survey

LT: 

Mar  Copper, Gold, Silver (COMEX)

Apr  Natural Gas (NYMEX)

FN: 

Mar  Coffee  (LIFFE)

 

 

Topics: Copper, Gold, LME, Sugar
More from: Kash Kamal