Views on Commodities, Currencies and Bonds at a Glance
Ahmedabad, 20 April
ENERGY
International and domestic crude oil futures extended losses on Wednesday weighed down by concerns that higher interest rates could dampen global economic growth and future energy demand. Additionally, the dollar settled higher on Wednesday and kept upside capped. Meanwhile, the latest EIA report showed crude oil stocks in the US fell by 4.581 million barrels last week, far exceeding forecasts for a 1.088 million barrel drop and offering a slightly bullish outlook for short-term demand and capped downside. U.S. NYMEX and MCX gas futures tumbled on Wednesday on forecasts confirming the weather will remain mostly mild and heating demand lower than usual for the next two weeks. Prices fell despite data showing record amount of gas flowing through the LNG terminal.
BULLION
International and domestic gold extended losses on Wednesday pressured by a stronger dollar and higher Treasury yields. Prices fell as investors turned skeptical about potential U.S. rate cuts later this year. However, international and domestic silver rose on Wednesday after the silver institute predicts another deficit in 2023 of 142.1 million ounces.
BASE METALS
COMEX and MCX Copper futures fell Wednesday weighed down by a rebound in the dollar. Prices also fell weighed down by concerns that higher interest rates could dampen global economic growth and future metal demand. Among other metals, aluminium and lead prices gained, while zinc, nickel and tin ended weaker on Wednesday
CURRENCIES
The Indian Rupee weakened against the Dollar on Wednesday as the greenback rebounded taking support from firmer U.S. Treasury yields. The Rupee settled at 82.2250 to the U.S. dollar, its weakest since April 3. The currency’s previous close was 82.04. Meanwhile, USD/INR premiums continued their downtrend, with the one-year implied yield down 10 bps to 2.21%. The yield has fallen more than 30 bps since the Reserve Bank of India earlier this month held rates steady at 6.50%. Most of the Asian peers were weak this Wednesday and also weighed on the local unit.
BONDS
Indian bond yields ended steady as traders avoided placing large bets amid lack of fresh triggers. The 10-year benchmark 7.26% 2032 bond yield ended at 7.2251%, after closing at 7.2207% on Tuesday. U.S. Bond yields rose on Wednesday as investors priced for the possibility the Federal Reserve could keep hiking interest rates.
(report by: Sriram Iyer, Senior Research Analyst at Reliance Securities)
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)
(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ, ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)
