Commodities Evening Update

Tuesday, August 11, 2015

International Commodities

Content
Market Highlights
Days overview
Outlook
Important Events for Today

Prathamesh Mallya
Sr. Research Analyst Precious Metals & Energy
prathamesh.mallya@angelbroking.com
(022) 2921 2000 Extn :6134

Kaynat Chainwala
Research Associate Base Metals
kaynat.chainwala@angelbroking.com
(022) 2921 2000 Extn :6136

Angel Commodities Broking Pvt. Ltd.

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Commodities Evening Update

Tuesday, August 11, 2015

International Commodities

as at 4.00 pm 11th Aug 2015

Performance during the day

News and Analysis

Index

China surprises markets with devaluation of Yuan.

LME Copper stocks gained 0.2 percent on Monday.
German ZEW Economic Sentiment plunged to 25-mark in July.
European markets are trading lower today after China's surprise
2 percent devaluation of the Yuan. Asian markets ended lower
and the US stock futures are trading in the green.
German ZEW Economic Sentiment plunged to 25-mark in July
from 29.7 levels in June.
Spot gold prices are trading higher today by 1 percent trading at
$1112per ounce while MCX gold prices are trading higher by
1.32 percent at Rs.24911 per 10 gms. Weak dollar, and European
equities coupled with the impact of China's move to devalue its
currency and prop up its economy are taking dominance.
LME Copper prices plunged by 2.4 percent on Tuesday owing to
strength in the DX after Chinas central bank cut the Yuans dailyfixing rate by a record 1.9 percent Tuesday after the
International Monetary Fund last week delayed a decision to
endorse it as a reserve currency. Also, gain in LME stocks exerted
pressure on prices. On the MCX, copper prices are trading lower
by 1.76 percent at Rs.333 per kg.
Oil prices are trading lower with WTI declining by 1.5 percent at
$44.30 per barrel While MCX declines by 0.1 percent at Rs.2857
per barrel. China devalued its currency in its latest effort to prop
up economic growth, making dollar-priced commodities more
expensive and weighing on the oil demand outlook for the
world's top energy consumer. A slowdown in China's economy,
which is still expected to grow by around 7 percent annually, has
been a key driver for the sharp drop in oil prices over the past
year along with rising global supplies.

Nifty

Open

High

Low

% Chg
from Prev
day

Last

8548.45

8556.25

8441.30

8462.35

-0.74

Sensex

28193.26

28205.12

27825.83

27866.09

-0.84

Nikkei

20920.60

20946.93

20582.01

20720.75

-0.42

Kospi

2020.15

2021.81

1986.46

1986.65

-0.82

FTSE

23916.25

23979.61

23843.18

23843.18

-0.37
Source: Reuters

as at 4.00 pm 11th Aug 2015

Currency

Open

High

Low

Chg from
Prev day

Current

Dollar Index

97.24

97.65

97.065

97.265

0.06

Euro/$ Spot

1.1019

1.1049

1.0959

1.1027

0.10

INR/$ Spot

63.7628

64.34

63.7405

64.205

0.69
Source: Reuters

as at 4.00 pm 11th Aug 2015

Commodity

Unit

Open

High

Low

Last

% Chg
from
Prev
day

Spot Gold

$/oz

1104.01

1119.00

1093.2

1113.46

0.85

Comex Gold

$/oz

1103.80

1116.70

1094.0

1108.50

0.39

Rs/10
gms

25351.00

25723.00

25315

25602.00

1.13

Spot Silver

$/oz

15.22

15.41

15.07

15.35

0.92

Comex Silver

$/oz

0.15289

0.15289

0.15289

0.15289

0.00

MCX Silver
July15

Rs/kg

35734

36060

35550

35923

0.52

Crude Oil Nymex

Aug15

$/bbl

44.81

45.34

44.14

44.22

-1.65

ICE -Brent Crude

Oil

$/bbl

50.22

51.10

49.68

49.77

-1.27

MCX Crude Oil

July15

Rs/bbl

2874

2913

2846

2848

-0.42

Copper LME - 3
Month

$/tonne

5293.00

5363.50

5166.50

5173.00

-2.37

Rs/kg

338.30

338.80

332.80

333.00

-1.76

$/tonne

1895.00

1904.00

1839.50

1840.50

-2.88

Rs/kg

120.10

120.15

118.10

118.35

-2.03

$/tonne

1754

1762

1720

1725

-1.82

Rs/kg

111.80

112.35

110.70

110.85

-1.25

$/tonne

11195

11275

10705

10760

-3.76

Rs/kg

713.00

713.40

690.90

693.80

-3.07

$/tonne

1612.00

1615.00

1573.50

1582.50

-1.83

Rs/kg

101.55

101.80

100.20

100.60

-1.23

MCX Gold Oct15

MCX Copper
Aug15
Zinc LME - 3
Month
Zinc MCX Aug15
Lead LME - 3
Month
Lead MCX
Aug15
Nickel LME - 3
Month
Nickel MCX
Aug15
Aluminum LME - 3
Month
Aluminum MCX
Aug15

23

Commodities Evening Update

Tuesday, August 11, 2015

International Commodities
Outlook

China devaluing its own currency signals risk in the global markets and hence flight of safety towards the yellow metal
supporting the price rise today.
Crude prices are expected to trade lower as bearish sentiment on account of weak Chinese demand coupled with rising
gasoline inventories in the US.
We expect LME Copper prices to trade lower today as investors will keenly await Chinese Industrial Production data due
tomorrow following earlier mixed data for further cues. However, devaluation of Yuan will lead to some gains in prices.
th

Technical Outlook for evening session 11 Aug 2015 ( CMP as of 4.00 pm)
Commodity
Gold Oct15
Spot Gold
NCDEX Gold hedge Sep15
Silver Sep15
Spot Silver
NCDEX Silver hedge Aug15
Crude Oil Aug15
Nymex Crude Oil Sep15
Natural Gas Aug15
LME Copper
Copper Aug15
Zinc Aug15
Lead Aug15
Aluminum Aug15
Nickel Aug15

Unit
Rs/10 gm
$/oz
Rs /kg
$/oz
Rs /bbl
$/bbl
Rs /mmbtu
$/tonne
Rs /kg
Rs /kg
Rs /kg
Rs /kg
Rs /kg

Support 2

Support 1

25230
1102
22900
34750
15
31250
2780
43.15
176
5090
327
116.4
109.2
99.5
677

25350
1108
22990
35100
15.2
31500
2815
43.7
179
5130
330
117.2
110
100.2
685

CMP

25459
1113.5
23069
35321
15.35
31740
2851
44.24
181.2
5173
333.5
118.15
111
100.75
694.4

Resistance1

25580
1119.5
23160
35700
15.56
32000
2880
44.75
184
5205
336
118.8
111.6
101.6
702

Resistance 2

25690
1125
23250
36000
15.73
32200
2915
45.3
186
5245
339
119.7
112.5
102.3
710

Important Events for Today

Indicator

Country

Time (IST)

New Loans

China

6:00am

Actual

1480B

Forecast

725B

Previous

1279B

Medium

Impact

German ZEW Economic Sentiment

Euro

2:30pm

25.0

31.1

29.7

High

ZEW Economic Sentiment

Euro

2:30pm

47.6

43.9

42.7

Medium

Prelim Nonfarm Productivity q/q

US

6:00pm

1.6%

-3.2%

Medium

Prelim Unit Labor Costs q/q

US

6:00pm

-0.1%

6.7%

Medium