DAILY MCX NEWSLETTER

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www.capitalstars.com CapitalStars Research 13/02/2015
DAILY MCX NEWSLETTER

www.capitalstars.com CapitalStars Research
www.capitalstars.com CapitalStars Research
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BULLION
BASE METAL COPPER prices rose on Thursday, as
investors cheered reports of a cease-fire
agreement between Russia and Ukraine. Russian
President Vladimir Putin confirmed that a cease
fire deal with Ukraine starting February 15
had been reached, following months of violence.
The U.S. dollar index, which measures the
greenback's strength against a trade-weighted
basket of six major currencies, went down. A
weaker dollar boosts demand for base
metals as an alternative investment
and makes dollar-priced
commodities cheaper for holders of
other currencies. Market sentiment
remained subdued after talks between
Greece and
European Union officials ended without
an agreement, though both sides said there
was still hope for a deal. Further talks are due
to be held next Monday.
GOLD moved higher in COMEX on Thursday on
a weaker dollar and data showing the U.S.
economic recovery remains fragile. The
dollar eased against a basket of international
currencies, giving gold prices a boost. Gold
advanced further after two reports showed the
U.S. continues to encounter potholes on the road
to recovery. In a worrisome signal of weak
consumer spending, January retail sales fell
0.8. In addition, initial jobless claims, a
measure of layoffs, rose by 25K to a seasonally
adjusted 304K in the week ended Feb. 7.
Investors also continue to watch Greece
and Ukraine. Eurozone officials are
wrangling over Greece's debt problems,
while Ukraine peace talks yielded a cease-fire
deal with Russia-backed separatists.
ENERGY
CRUDE OIL futures climbed on Thursday, arresting
a two-session losing streak, as industry spending
cuts and a weaker dollar spurred buying. The
chief executive of Shell said supply might not be
able to keep up with growing demand after oil
companies slashed budgets following a
near-halving of oil prices since June. U.S. crude
reached 51.41 on Thursday before paring gains
after oil services firm Genscape reported a large
build at the Cushing, Oklahoma, storage hub and
delivery point for the U.S. crude contract.
Traders pointed to a weaker dollar as boosting
buying on Thursday, as the drop made
dollar-priced commodities such as oil cheaper.
Natural gas futures extended losses on Thursday,
after data showed that U.S. natural gas supplies
fell less than forecast last week, underlining
concerns over weak demand.
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