European markets traded lower today as European Commission stated that European economy will shrink in the current year with negative outlook after countries from Spain to Italy faced recession. According to the commission, GDP will increase by 1 percent in 2013 after declining by 0.3 percent in 2012. Additionally, escalating political turmoil in Europe also led to rise in risk aversion in the global markets.
India’s industrial output unexpectedly declined by 3.5 percent (y-o-y) in March as against an annual rise of 4.1 percent in February. Manufacturing output declined by 4.4 percent (y-o-y) in March from a rise of 4 percent a month ago.
Strength in the US Dollar Index (DXM2) coupled with a rise in risk aversion in the global markets due to worsening tensions in the eurozone exerted downside pressure on the gold and silver prices today. Silver, being an industrial metal also took cues from downside in base metals pack today.
The base metals complex traded on a negative note today on the back of rising worries over Europe’s debt crisis, coupled with strength in the US Dollar IIndex. Additionally, weak sentiments in the markets also acted as a negative factor for metal prices.
However, depreciation in the Indian rupee cushioned further losses on the domestic bourses. Copper is the worst performer amongst the base metals complex today, as the metal declined by 1.6 percent on the LME and by 0.8 percent on the MCX till 4.30 pm IST. The red metal touched an intra-day low of $7981/ton and was hovering around $7985/ton until 4.30 pm IST.
Nymex crude oil prices declined more than 1 percent today on account of worsening European debt crisis coupled with rise in crude oil production from the Organization of Petroleum Exporting Countries (OPEC). Additionally, a stronger Dollar Index exerted further downside pressure on prices. Crude oil touched an intra-day low of $ 95.74/bbl and hovered at $96.04/bbl today till 4:30pm IST.
Re-emergence of the uncertainty over eurozone debt crisis coupled with weak sentiments in the global markets will exert downside pressure on precious metals and base metal prices in the evening session. Additionally, strength in the US Dollar Index will also act as a negative factor for prices.
Markets will also take cues from US economic data to be released later in the evening and if the data come on a negative note then this will further lead to further downside in commodity prices. Crude oil prices are expected to trade lower in the evening session on the back of rise in OPEC’s oil production, increasing worries over eurozone debt crisis and strength in the US Dollar Index.
India’s industrial output unexpectedly declined by 3.5 percent (y-o-y) in March as against an annual rise of 4.1 percent in February. Manufacturing output declined by 4.4 percent (y-o-y) in March from a rise of 4 percent a month ago.
Strength in the US Dollar Index (DXM2) coupled with a rise in risk aversion in the global markets due to worsening tensions in the eurozone exerted downside pressure on the gold and silver prices today. Silver, being an industrial metal also took cues from downside in base metals pack today.
The base metals complex traded on a negative note today on the back of rising worries over Europe’s debt crisis, coupled with strength in the US Dollar IIndex. Additionally, weak sentiments in the markets also acted as a negative factor for metal prices.
However, depreciation in the Indian rupee cushioned further losses on the domestic bourses. Copper is the worst performer amongst the base metals complex today, as the metal declined by 1.6 percent on the LME and by 0.8 percent on the MCX till 4.30 pm IST. The red metal touched an intra-day low of $7981/ton and was hovering around $7985/ton until 4.30 pm IST.
Nymex crude oil prices declined more than 1 percent today on account of worsening European debt crisis coupled with rise in crude oil production from the Organization of Petroleum Exporting Countries (OPEC). Additionally, a stronger Dollar Index exerted further downside pressure on prices. Crude oil touched an intra-day low of $ 95.74/bbl and hovered at $96.04/bbl today till 4:30pm IST.
Re-emergence of the uncertainty over eurozone debt crisis coupled with weak sentiments in the global markets will exert downside pressure on precious metals and base metal prices in the evening session. Additionally, strength in the US Dollar Index will also act as a negative factor for prices.
Markets will also take cues from US economic data to be released later in the evening and if the data come on a negative note then this will further lead to further downside in commodity prices. Crude oil prices are expected to trade lower in the evening session on the back of rise in OPEC’s oil production, increasing worries over eurozone debt crisis and strength in the US Dollar Index.
Source: http://www.forexpros.com
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