6 Aug 2014
5 Aug 2014
4 Aug 2014
Zinc futures edged higher by 0.28% to Rs 143.60 per kg today as speculators built-up positions amid positive cues from the global market and better domestic demand.
At the Multi Commodity Exchange, zinc for delivery in August gained 40 paise, or 0.28%, to Rs 143.60 per kg, with a business turnover of 247 lots.
The metal for delivery in September also rose 20 paise, or 0.14%, to Rs 143.85 per kg, with a business turnover of two lots.
Globally, at the London Metal Exchange (LME), zinc for delivery in three months advanced 0.90% to USD 2,359.75 per tonne.
Marketmen said besides a firming trend at domestic spot market, the metal's strength at the LME as stockpiles tracked in London and Shanghai decreased and Goldman Sachs Group projected a global deficit this year, supported the upside in zinc prices at futures trade.
LME inventories for zinc fell 1.9% in July, declining for the fourth straight month. Stockpiles monitored by the Shanghai Futures Exchange dropped 1.3% last week to the lowest level since 2009. - business-standard
After the Federal Reserve maintained its path towards raising U.S. interest rates next year, other major central banks will jostle for space on a crowded stage this week.
The European Central Bank, Bank of Japan, Bank of England and the central banks of India and Australia all hold meetings. While imminent action is unlikely, the time when policy settings start pointing in different directions is nearing.
U.S. growth rebounded in the second quarter and the Fed upgraded its assessment of the economy last week. It is on course to stop creating money in October but the expectation is that there will be no interest rate rise before mid-2015.
That puts the Bank of England in pole position to be the first major central bank to push rates up from their record low 0.5 percent, perhaps before the year is out.
Although the UK economy is expanding at an annualised clip in excess of 3 percent and unemployment is tumbling, the absence of wage pressure means there is no immediate reason to act.
The consensus is that rates will not rise until early 2015 but polling by Reuters last week found economists expect a first voice or two on the nine-strong Monetary Policy Committee to call for a rate rise this week.
The last time the MPC was considering raising rates was in 2006. In May of that year, one MPC member voted for a hike and it took just three months before a majority followed suit.
"We expect the jobless rate will continue to fall rapidly, with the BoE hiking earlier and further than markets project," said Michael Saunders, chief UK economist at Citi.
The voting pattern will only become public when minutes of the meeting are released two weeks hence.
The Fed has just registered its first dissenter, with the hawkish Charles Plosser saying the commitment to keep rates near zero for "a considerable time" did not reflect the gains made by the economy.
Lack of wage inflation has been a common theme in the United States and euro zone as well, though U.S. labour costs recorded their biggest gain in more than 5-1/2 years in the second quarter. That spooked Wall Street last week as it may hasten the Fed's first move.
The European Central Bank, which also meets on Thursday, faces a very different problem to the Bank of England.
Euro zone inflation has slipped further - to just 0.4 percent in July - and if it does not start picking up soon, the pressure to start printing money will grow despite strong reservations within the ECB's Governing Council.
"(The inflation data) don't give any assurance that the euro zone is already out of the deflation danger zone," said Peter Vanden Houte, chief euro zone economist at ING.
"Moreover, with the escalating conflict with Russia dampening growth prospects, it seems unlikely that deflation fears will disappear any time soon."
Having cut all its key interest rates in June and unveiled a new scheme to prime banks with cheap long-term money from September in the hope they will lend it on, the ECB will not act until it has had time to judge the impact of those measures.
If the ECB won't consider more dramatic action until late in the year, it will have a small window of opportunity to act before U.S. rates start heading higher in 2015.
Policymakers admit there is little chance of euro zone long-term interest rates decoupling from U.S. ones if they start rising.
NO CHANGE IN ASIA
The Bank of Japan will deliver its latest policy verdict on Friday, following the sharpest fall in factory output since the devastating earthquake and tsunami of 2011.
With the BOJ already having created money at a furious rate, any policy shift is unlikely. But it may have to temper its assessment that production is "rising moderately as a trend", toning down its upbeat language on the outlook as it becomes less sure about when or even if exports will rebound.
The Reserve Bank of India will leave its key interest rate at 8 percent on Tuesday and won't ease policy until early next year on fears food inflation will spike if monsoon rains are below average, according to a Reuters poll.
Growth is slowing and has stayed below 5 percent in the past two years, well below levels needed to create enough jobs for India's young and expanding workforce.
The Reserve Bank of Australia is also expected to hold rates at 2.5 percent when it meets on Tuesday. Its next move is likely to be up rather than down, but not until next year.
Chinese trade data are due on Friday, kicking off the monthly run of indicators.
Latest survey evidence from the world's number two economy showed factories posted their strongest growth in at least 1-1/2 years in July, adding to evidence that the economy is gaining momentum after a spate of state stimulus measures. - reuters
PT Freeport Indonesia may start exporting copper concentrate on Wednesday after it reached an agreement with the government late last month to resume the exports after a six-month stalemate.
Freeport Indonesia's Chief Executive Rozik Soetjipto said that the local unit of U.S. copper and gold producer Freeport-McMoRan Inc. (FCX) may resume overseas shipments with 10,000 metric tons of the mineral bound for China.
The Indonesian government in January imposed an export ban on unprocessed ores aimed at keeping lucrative refining work within the country. In addition to the ore-export ban, the government in January imposed export duties on mineral concentrates of copper, iron, zinc, and manganese. The duties, which begin at 20%-25%, would rise to 60% before a complete ban on concentrate exports is imposed in 2017.
The government and Freeport Indonesia on July 25 struck a deal allowing the miner to pay lower export taxes as it agreed to build a smelter in Indonesia.
Director General of Coal and Mineral Resources Sukhyar said then that Freeport Indonesia's total copper-concentrate exports are expected to reach 756,300 tons by year-end, with an estimated value of $1.56 billion. - morningstar