By Deepak Rangan
At the Multi-Commodity Exchange of India (MCX), all major commodities registered a loss for the week Jan 30- Feb 04, 2012. Natural gas was the top loser, with over 11% in loss.
In the US, CB consumer confidence declined together with the ISM manufacturing PMI. Unemployment claims declined for the wee, but the sentiment was broken by the rise in the unemployment rate. Factory orders also declined, indicating a tough road ahead for the manufacturing sector.
In China, the HSBC final PMI was recorded below 50,indicating economic contraction.
In Europe, the Greek debt deal garners full attention of traders. Certain reports suggested that Greek might be pushing for a 70% cut (loss) for bondholders. German retail sales and French consumer spending declined.
PRECIOUS METALS
-Gold and Silver fell marginally by over 1% for the week. Negative US consumer confidence and China PMI below 50 continued to cast uncertainty. Prithviraj Kothari, President of the Bombay Bullion Association, opined that Indian gold demand and imports could fall further. In China, new year is believed to have spurred some record buying.
BASE METALS
-Base metals declined on the back of Chinese PMI data, which remained below 50 and indicated economic contraction. Copper inventories at Shanghai are said to be in oversupply, and traders are expecting Chinese buying to soften in the coming months.
ENERGIES
-Crude oil prices continue to fall after breaking through the Rs 5250 support. Fundamentals continue to support and the downtrend will easily reverse once the Iran issue blows out of control. Natural gas prices rebounded from Rs 140 resistance. What is now to be seen is whether prices are basing out and forming a double bottom, in which case a break above Rs 140 may spur buying interest
