DAILY MARKET NEWS AND OUTLOOK

BULLIONS

Bullions counter may trade on mixed path as yellow metals inched higher in holiday-thinned trade on Tuesday, helped by a weaker U.S. dollar and lower bond yields on rising prospects of interest rate cuts by the Federal Reserve as early as March next year. Gold can move in range of 62800-63400 while silver also can move in range of 75000-76000. Data on Friday showed that U.S. prices fell in November for the first time in more than 3-1/2 years, pushing the annual increase in inflation further below 3%, and boosting financial market expectations for an interest rate cut from the Federal Reserve next March. Traders are now pricing in an 88% chance for a rate cut by the U.S. central bank in March, according to the CME FedWatch tool. Meanwhile, data out on Tuesday showed that Japan’s jobless rate was unchanged at 2.5% in November from the previous month, while business-to-business service inflation was steady at 2.3% last month.

BASE METALS

In base metal counter, Copper can move in range of 728-738. Panama’s President ordered the shutdown of the Cobre Mine, impacting 1% of global copper supply and contributing to potential market shifts. By late November, Panama’s president ordered the shutdown of First Quantam’s Cobre Mine, which accounts for an estimated 1% of global copper supply, after it was deemed unconstitutional by Panama’s Supreme Court. Zinc can move in range of 224-232. Aluminium may trade in range of 205-212. A deadly explosion at an oil terminal in Guinea destroyed fuel tanks and sparked fears over the country’s export of bauxite, the raw material to make the light metal. China imported 91 million metric tons of bauxite from Guinea in the first 11 months this year, accounting for 70.2% of its total imports, customs data showed.

ENERGY

Crude oil may remain on firm path as it may move in range of 6150-6350. Oil prices were little changed as investors focused on geopolitical tensions in the Middle East and optimism the U.S. Federal Reserve would soon start cutting interest rates, lifting global economic growth and fuel demand. Shipping firms had suspended the passage of vessels through the Red Sea that connects with the Suez Canal, which handles about 12% of world trade, and imposed surcharges for re-routing ships. Separately, Iran denied on Monday a U.S. claim that a drone launched from Iran had struck a chemical tanker in the Indian ocean. The Pentagon said at the weekend that the Liberia-flagged, Japanese-owned and Netherlands-operated Chem Pluto ship was hit 200 nautical miles (370 km) off the coast of India. Oil prices were also buoyed by expectations the Fed would cut interest rates next year after U.S. data released on Friday showed by some key measures inflation was now at or below the central bank’s 2% target. Natural gas prices may remain downbeat as it can move in range of 196-207.

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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