DAILY MARKET NEWS AND OUTLOOK

BULLIONS

Bullions counter may witness some bounce back at lower levels as the dollar eased against the yuan after promising China economic data boosted recovery hopes in the world’s top bullion consumer, although the possibility of further U.S. interest rate hikes kept investors on edge. Yellow metal can move in range of 58500-58900 while silver also can move in range of 70800-72500. Data on Thursday showed U.S. producer prices increased by the most in more than a year last month while retail sales also beat expectations, boosted by a surge in gasoline prices. This comes after U.S. consumer prices in August increased by the most in 14 months, keeping bets alive for further rate hikes by the Federal Reserve after a likely pause next week. The European Central Bank also raised its key interest rate to a record high of 4% on Thursday, but signalled that the hike was likely to be its last.

BASE METALS

In base metal counter, Copper can move on upside path as it can move in range of 737-745. Copper prices were firmer in Asian trade and were on track for weekly gains. This was driven by China’s increased policy support for its economic recovery. China’s central bank announced a reduction in the reserve requirement ratio (RRR) for banks to boost liquidity. This is part of a series of stimulus measures, including steps to stimulate housing demand. China released several economic indicators, including new home sales, property investment, and industrial production data. Industrial output grew by 4.5% in August compared to the previous year, accelerating from the 3.7% pace seen in July. Zinc may remain on upside path as it can move in range of 220-230. Aluminum can move in range of 202-206.

ENERGY:

Crude oil may continue its rally as better-than-expected Chinese economic data and reports of record oil consumption bolstered the view that demand in the world’s second-largest crude consumer will continue to surge. Overall it can move in range of 7400-7650. China’s industrial output and retail sales grew at a faster-than-expected rate in August, suggesting that the recovery of the world’s second-largest economy from the COVID-19 pandemic is stabilising. The record China refining rates are occurring as output cuts by major producers Russia and Saudi Arabia are increasing worries about supply. The supply concerns have pushed both Brent and WTI to their highest since November. The International Energy Agency said this week it expects Saudi Arabia’s and Russia’s extended oil output cuts to result in a market deficit through the fourth quarter. Natural gas prices may remain on upside path as it can move in range of 220-230.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

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