CAPITALSTARS |MCX MORNING NEWS UPDATES- 4 Jan 2018

by geetkhare Khare capitalstars

Gold Down In Asia As Fed Minutes Point More Hawkish Views On Rates - Gold prices fell in Asia on Thursday as the Fed appeared a tad more hawkish in the December meeting minutes and investors fretted over inflation implications. Minutes of the Fed's December meeting showed officials expect reductions in corporate and personal taxes to provide boosts to consumer and business spending, though they remain somewhat unsure of how much impact the recently passed reform effort will have. The Federal Open Market Committee increased their expectations for 2018 GDP growth from 2.1%, or about trend since the post-financial crisis recovery, to 2.5%. “Most participants indicated that prospective changes in federal tax policy were a factor that led them to boost their projections of real GDP growth over the next couple of years,” the minutes stated. While generally looking favorably on the rising stock market indexes, some officials have expressed concern that keeping policy overly accommodative could inflate bubbles. “In light of elevated asset valuations and low financial market volatility, a couple of participants expressed concern that the persistence of highly accommodative financial conditions could, over time, pose risks to financial stability,” the minutes said.

Base metals traded mixed; lead gained as US frigid weather persisted - Base metals ended lower on Wednesday, while lead gained more than 1 percent as parts of the United States braced for more frigid weather. The peak demand period for lead, which is largely used to make batteries, is during the height of winter when freezing temperatures cause battery failures. Mixed signals were also emerging over the extent of China's demand for imported industrial metals in 2018, which was dampening activity among some local investors and leading to a broader fall on the bourse. Optimism about Chinese demand was boosted overnight by an unexpected December rise in manufacturing and a pickup in new orders. But higher prices for raw materials and firms cutting staff have fuelled concerns about growth.

Oil prices hit fresh highs as market tightens - Oil prices on Thursday hit fresh two-and-a-half year highs and were at levels last seen at the start of the commodity slump in 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts. Prices were also buoyed by Asia's stock markets, which flirted with 10-year highs on Thursday amid strong data from leading economies including the United States, Japan and Germany.Beyond a brief intraday spike in May, 2015, these were the highest crude price levels since December, 2014, at the start of the oil price downturn. Freezing weather in the United States has also spurred short-term demand, especially for heating oil. "The market is clearly getting more bullish on oil as inventory levels get closer to the five-year average. Geopolitical uncertainty in Iran, OPEC's third largest producer, is also helping to support the price as citizens are again protesting the government," said by William O'Loughlin, investment analyst at Australia' Rivkin Securities. Iran's elite Revolutionary Guards have deployed forces to three provinces to put down anti-government unrest that has been ongoing for a week, their commander said on Wednesday.

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