Existing Home Sales and Commodity Market Tips

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Existing Home Sales and Commodity Market Tips
Crude Oil during the evening session on Thursday
we had the inventory report from the US
Department of Energy which said crude stocks in
the country rose by 973,000 barrels to 362.3
million while touched its highest levels since
December last year. While the increase in crude
stocks was lower than expected, markets were
keen to look at the movement in the
distillate front. Distillate stocks which
includes heating oil and diesel fell by just fell
339,000 to 112.7 million highly lower than
expectations despite a stubbornly higher winter
season in the US. Separately gasoline
stocks increased and put a negative shadow
over the black liquid. Losses in the commodity
however were limited as markets took positivity
out of the inventory scenario at Cushing.
Supplies at Cushing, Oklahoma slipped as oil
pipeline by TransCanada Corp started draining the
liquid towards the gulf coast recently.
Inventories at Cushing fell by 1.73 million
barrels to 35 million barrels its lowest since
October last year. Overall drop in the last three
weeks has stood just under 6 million barrels for
the commodity for the Cushing platform and a
important positive indicator for WTI in
short-term. Looking at the overall cues for the
commodity in Intra-day we are having a mixed
outlook for the day as on one side the
inventory report published by the US DoE was
mixed to marginally weak though the winter
season demand continues in the US. In other
market updates, equities in Asia are positive and
could support against any major drop in prices
during the early trade on Friday. We have a
ranged view for the commodity in todays
session though would look for selling
or buying based on the developments in
the latter half of the day Global market
analysis Most Asian markets are trading
positive this morning taking cues from the
overnight US equities which ended on a higher
note. From the global front, US dollar was
heading for a first weekly advance while euro
currency is still managing to trade above
1.3700. The Japanese Yen is trading weak above
102 marks against the US dollar this morning as
the economy recorded a huge trade
deficit. Coming to crude oil, WTI April
future contract is currently trading at
102.73, the weekly inventory numbers
released last night in the US was less
significant while it might have had a
slight negative impact on prices. For the day
we believe this commodity to remain muted and
trade in a very mixed note. There are several
factors playing out related to crude oil,
inventory numbers faded having no impact on
oil prices, US winter continues to be a
worry, prices are trading at good higher
levels and money managers are hoping it to trade
strong. Looking at the basket full of sides we
believe it may trade in a mixed note and we do
not intend to hold any strong trade idea on oil
today. There are no significant data today except
the US existing home sales number. Commodity
Market Tips GOLD MCX APR SELL BELOW 29850 SL
29960 TGT 29750-29650 Today Economic Data
Indicators
DATE TIME Region Indicator Period Survey Prior
21.02.14 1500 UK Retail Sales E Auto Mom Jan -1.00 2.80
21.02.14 1500 UK Retail Sales Incl. Auto MoM Jan -1.00 2.60
21.02.14 1500 UK Public Sector Net Borrowing Jan -9.08 10.4B
21.02.14 2030 US Existing Home Sales Revision --- ---- ---
21.02.14 2030 US Existing Home Sales Jan 4.70M 4.87M
21.02.14 2030 US Existing Home Sales MoM Jan -3.50 1.00