Market Factors to Watch |Tuesday, 3 December 2013 ==================================== GLOBAL MARKETS ==================================== • U.S. STOCKS — U.S. stocks closed lower on Monday, with investors unable to find new reasons to keep pushing shares higher after eight straight weeks of gains, while the mining sector slid alongside sharp drops in precious metals prices. The major U.S. stock indexes hovered near break-even levels for much of the day after some encouraging economic data limited early losses, but turned lower in the last hour of the trading day. Equities have rallied in recent weeks on expectations of continued stimulus from the Federal Reserve. The S&P 500 has risen for eight straight weeks, its longest run since a nine-week climb between November 2003 and January 2004, putting its yearly gain at nearly 27 percent. Both the Dow and the S&P 500 have hit repeated all-time highs this year. • U.S. TREASURIES — U.S. Treasuries yields rose on Monday as investors took a cautious stance ahead of a heavy week of data, culminating in Fridays key November employment report, which will be scoured for signals about the Federal Reserves future decisions. Stronger-than-expected manufacturing in the United States and abroad spurred selling in U.S. government debt as some traders reconsidered how soon the U.S. central bank might dial back its bond purchases, currently at $85 billion a month, if the economy grows further, albeit at a sub-par pace. Mondays yield rise followed a weak November for Treasuries which recorded a 0.33 percent monthly loss as data showed U.S. economic growth was not derailed by the 16-day government shutdown in October, according to an index compiled by Barclays. • FOREX — The dollar climbed to a more than six-month high against the yen on Monday on speculation the Bank of Japan may expand its already massive economic stimulus. The euro fell against the dollar and hit an 11-month low against the British pound after data showed disappointing manufacturing growth in France and Spain. japans central bank is looking to go beyond its $70-billion-a-month bond-buying operation, according to officials briefed on the process. Options include major purchases of stock-market-linked funds or other assets riskier than Japanese government bonds, the insiders said. the dollar rose as high as 103.09 yen, the strongest since May 23, and was last up 0.6 percent at 102.98 yen. The yen continued to struggle after falling about 4 percent in November against the dollar and euro. Investors have been selling the low-yielding yen to buy riskier assets in carry trades made attractive by the Bank of Japans ultra-loose monetary policy. BOJ Governor Haruhiko Kuroda said on Monday that he would not hesitate to adjust policy, fanning speculation the bank could take more easing steps next year. The euro rose 0.4 percent to 139.56 yen. At the session peaks on Friday and Monday, the euro was trading around the highest in five years against the yen. Against the dollar, the euro shed 0.4 percent to $1.3537, retreating from Fridays one-month high of $1.3621. The euro zone manufacturing PMI rose to 51.6 last month from Octobers 51.3, compared with an earlier flash reading of 51.5. But Frances PMI sank to a five-month low of 48.4 from 49.1, while Spains manufacturing sector shrank. The euro hit its lowest since early January against sterling at 82.49 pence per euro after UK manufacturing data bolstered expectations of an earlier tightening by the Bank of England. • GOLD — Gold dropped on Monday, with investors jittery ahead of key U.S. data this week that could provide clues on when the Federal Reserve will begin scaling back its monetary stimulus. U.S. data including nonfarm payrolls, third quarter GDP and manufacturing PMI will be released this week, giving more insight into the strength of the economy. A strong recovery could prompt the Fed to begin cutting back its $85 billion in monthly bond purchases, denting golds appeal as a hedge against inflation. The U.S. central bank next meets on Dec. 17-18, when it could decide the fate of its stimulus. Spot gold had fallen 0.5 percent to $1,245.85 an ounce by 0735 GMT. • BRENT — Brent crude edged above $110 a barrel on Monday as Chinese industrial activity clung to an 18-month high and on continued supply disruptions in Libya. Oil prices were boosted by data showing manufacturing growth in China, the worlds biggest crude importer, held at an 18-month peak in November on firm domestic and foreign demand, despite worries the economy is facing a modest slowdown. • NIKKEI — Japanese stocks ended flat in choppy trade on Monday as investors turned cautious after the markets recent rapid gains and awaited mAjor U.S. economic data. The Nikkei stock average ended 0.04 percent lower at 15,655.07 points after trading in and out of positive territory earlier. But it is still within sight of a 5-1/2 year peak of 15,942.60 marked on May 23. ==================================== MALAYSIA ==================================== • PALM OIL — Malaysian palm oil futures ended lower on Monday after weaker-than-expected export demand made investors more cautious about taking risky bets, but losses were contained by hopes that rising biofuel consumption would keep prices supported. Exports of Malaysian palm oil products fell 4.8 percent to 1.45 million tonnes in November, compared with October, cargo surveyor Intertek Testing Services showed, signalling dwindling demand for the tropical oil as winter rolls in. Another cargo surveyor reported that shipments in the same period fell 4.9 percent. Despite palms nature to solidify in cold temperatures,market participants had initially expected exports to only weaken slightly towards the year-end as worlds second-largest consumer China re-stocked ahead of a festival next year. Bullish outlooks from leading analysts at a industry gathering in Indonesia last week had stoked optimism that higher biofuel mandates could lift prices in the first quarter next year. By Mondays close, the benchmark February contract on the Bursa Malaysia Derivatives Exchange had edged down 0.5 percent to 2,642 ringgit ($823) per tonne, with prices rangebound in a tight range between 2,629-2,659 ringgit. Total traded volume stood at 30,701 lots of 25 tonnes, lower than the average 35,000 lots. • COMPETING VEGOIL — The U.S. soyoil contract for December rose 0.5 percent in late Asian trade. The most active May soybean oil contract on the Dalian Commodities Exchange rose 0.3 percent. • FBM KLCI — The FBM KLCI ended Monday firmer from a last minute boost by SapuraKencana and PetGas, but the broader market was weaker as investors stayed mostly on the sidelines. At 5pm, the KLCI rose 5.43 points to 1,818.15. Turnover was 1.26 billion valued at RM1.39bil. There were 284 gainers, 474 decliners and 290 counters unchanged. ==================================== CLOSING PRICES FOR U.S. MARKET Monday, 2 December 2013 ==================================== • DJIA Down 77.64 points at 16,008.77 • NASDAQ Down 14.63 points at 4,045.26 • S&P 500 Down 4.91 points at 1,800.90 • US Soybean Oil [Jan’14] Up 0.14 points at 40.60 per metric ton • NYMEX Light Sweet Crude Oil (WTI) [Jan’14] Up 1.10 points at 93.82 dollars a barrel • US COMEX Gold [Feb’14] Up -28.5 points at 1221.9 dollars an ounce ==================================== CLOSING PRICES FOR CHINA MARKET Monday, 2 December 2013 ==================================== • DALIAN SOYBEAN (May 14) up 37 at 4429 • DALIAN SOYBEAN OIL (May 14) up 24 at 7316 • DALIAN PALM OIL (May 14) closed down 34 points at 6304 ==================================== CLOSING PRICES FOR MALAYSIA MARKET Monday, 2 December 2013 ==================================== • FCPO (Feb 14) closed down 12 at 2,642 • FKLI (Dec 13) closed up 7.5 at 1,819.0 • FBM KLCI up 5.43 points to close at 1,818.15 • FGLD (Dec 13) closed down 1.10 at 128.35 • FGLD (Jan 14) close down 0.95 at 128.60
Posted on: Tue, 03 Dec 2013 01:46:38 +0000
Trending Topics
Recently Viewed Topics
© 2015