Precious metals extended its northward journey, with Gold prices managing to settle above the significant levels of US$1,750/ounce.
In European bond markets, Spain sold 4.56bn euros of 3-5 year government bonds at lower yields. French yields also fell amid strong demand.
About 8bn euros of long-term French bonds were sold against bids worth over 19bn euros. On Greece front, government has promised to avert the collapse of a second rescue package, promising that talks would be completed by this week.
Greek PM has stated that he would push for a bigger debt write-down by investors and deeper budget cuts by his government. Private creditors are told to accept an average coupon of as low as 3.6% on new 30-year bonds, down from 4.25%.
On US macroeconomic front, market participants will keep an eye on nonfarm employment numbers, where they are expected to have risen by 150,000 after increasing 200,000 in December.
LME base metals moved lower, with losses witnessed across the board. Uncertainty regarding Greece debt negotiations took a toll on the base metals pack.
Meanwhile, Markit Economics reported that its purchasing managers’ index for January rose to 48.8 from 48.7 in the prior month.
On supply front, workers of one union at Teck Resources Ltd's Chilean Quebrada Blanca Copper mine, ratified strike action after contract negotiations with the firm broke down.
In respect with demand for Lead, North American shipments of replacement automotive batteries slipped by 2.2% in December from November.
Crude oil futures declined further, suppressed by the huge jump in US oil inventories and weakening demand in the world’s largest economy.
EIA reported in it’s weekly report that U.S. commercial Crude Oil inventories increased by 4.2mn barrels to 338.9mn barrels last week, as compared with a forecast of a 2.6mn barrel gain.
U.S. oil consumption declined to a 13-year average daily low of 17.653mn barrels a day.
Demand was 6% below a year ago levels. Gasoline demand fell 1.6% from a week earlier and 6.8% from a year ago.
Courtesy: IIFL
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