Commodities, Currencies and Bonds at a Glance (20/3/23)
ENERGY
International and domestic crude oil futures settled lower Friday, reversing early gains as banking sector crisis could lead to a recession in turn denting demand. Meanwhile, downside was capped amid supply concerns and oil rigs fell by 1 unit to 589 last week. Data from CFTC showed speculators raised their net long U.S. crude F&O positions by 3,113 contracts to 163,025 in the week to March 7. U.S. NYMEX Gas and domestic futures tumbled on Friday on forecasts for milder weather and lower heating demand than previously expected. So, Refinitiv forecasted that U.S. gas demand, including exports, would slide from 116.9 bcfd this week to 108.0 bcfd next week. Adding bearishness to the markets, gas rigs rose by 9 units to 162 last week.
BULLION
International and domestic gold & silver futures rose on Friday as a wave of banking crises shook global markets. The dollar and the benchmark bond yields fell on Friday, while bets solidified for a less aggressive Federal Reserve in its fight against inflation and supported bullion.
BASE METALS
COMEX and MCX Copper prices rose as the dollar and the benchmark bond yields fell on Friday. However, banking sector concerns capped upside. Among other metals, aluminium fell on COMEX and MCX. Zinc and lead on MCX gained on Friday.
CURRENCY
The Indian Rupee appreciated against the U.S. Dollar on Friday. The fall in the dollar index also aides most Asian peers this Friday and improved sentiments. The Rupee settled at 82.5525 per dollar, compared with its previous close of 82.7300. However, the Rupee ended weaker on the week by 0.62% Meanwhile data from RBI showed that India’s FX reserves fell to $560 billion as of March 10, from $562.40 billion a week earlier. In the overseas markets, the U.S. Dollar Index fell on Friday amid concerns of further turmoil in sent Treasury yields lower. The Euro gained on Friday after Eurozone inflation remained elevated at 8.5% year-on-year in February 2023, well above the ECB’s target of 2.0%, boosting expectations that the central bank will remain hawkish for longer. The Sterling gained against the dollar as receding bank sector worries lift sentiment.
BONDS
Indian bond yields ended little changed on Friday, tracking overnight movement in U.S. peers, while awaiting the Federal Reserve’s policy decision due Wednesday. The 10-year benchmark 7.26% 2032 bond yield ended at 7.3511%, after closing lower at 7.3526% on Thursday.
(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.)
