Tag: Fed

Copper futures in reverse gear on Fed rate hike hopes

Copper futures in reverse gear on Fed rate hike hopes

07/03/2017 15:44

Copper futures were trading lower during afternoon trade in the domestic market on Tuesday as investors and speculators exited their positions in the industrial metal as investors weighed the near-certain prospect of an interest rate hike in the US in March and ahead of the key economic data due later in the week.

The US monthly jobs report due to be released on Friday. Investors are expecting that the US Federal Reserve will raise interest rates at its upcoming policy meeting on March 14-15.

The higher US interest rates would diminish the demand for non-interest bearing assets while a higher dollar makes the commodities more expensive for buyers using other currencies.

At the MCX, copper futures for April 2017 contract is trading at Rs 389.50 per kg, down by 0.60 per cent, after opening at Rs 392.20, against a previous close of Rs 391.85. It touched the intra-day low of Rs 389.10 (at 15:41 hours).

Yellow metal loses shine on Fed rate hike expectations

Yellow metal loses shine on Fed rate hike expectations

07/03/2017 13:02

Gold futures were trading lower during afternoon trade in the domestic market on Tuesday as investors and speculators exited their positions in the precious metal on muted safe-haven demand on hopes of a US Fed interest rate hike in March and ahead of the key economic data due later in the week.

The US monthly jobs report due to be released on Friday. Also, investors are expecting that the US Federal Reserve will raise interest rates at its upcoming policy meeting on March 14-15.

At the MCX, gold futures for April 2017 contract is trading at Rs 28910 per 10 grams, down by 0.12 per cent, after opening at Rs 28941, against a previous close of Rs 28945. It touched the intra-day low of Rs 28899 (at 12:58 hours).

Yellow metal steady ahead of US Fed rate decision

Yellow metal steady ahead of US Fed rate decision

01/02/2017 15:39

Gold futures were little changed during afternoon trade in the domestic market on Wednesday as investors and speculators extended their positions in the precious metal as demand for safe-haven emerged as traders waited to see the US Federal Reserve decision on interest rates amid uncertainty over President Trump’s policies.

Donald Trump’s move mounted criticism and protests in major American cities.

The US Fed likely to keep interest rates unchanged today in its first policy decision since President Donald Trump took office, as the central bank awaits greater clarity on his economic policies.

Fed raised interest rates in December, at that time it signaled as many as 3 rises in 2017 as the Trump administration takes over with promises to boost growth via tax cuts, spending and deregulation.

At the MCX, gold futures for February 2017 contract is trading at Rs 28950 per 10 grams, up by 0.03 per cent, after opening at Rs 28873, against a previous close of Rs 28942. It touched the intra-day high of Rs 29095 (at 15:28 hours).

Post Session: Sensex ends 84 pts lower after Fed decision; TCS up 2%

15/12/2016 16:04

Amidst choppy trade, the Indian benchmark indices ended tad lower for the second straight session on Thursday, tracking a weak trend at other Asian markets, as investor sentiment were spooked by the Federal Reserve’s decision to rise key interest rate by 25 basis points, a move that would curb appetite for riskier assets. Persistent fund outflows by foreign investors and uncertainty about near term economic outlook following demonetization also weighed on sentiment.

The 30-share benchmark index closed trade at 26519.07, down by 83.77 points or by 0.31 per cent, and the NSE Nifty ended at 8153.6, down by 28.85 points or by 0.35 per cent.

IT index emerged as top gainers, rising over 0.5 per cent, with TCS over 2 per cent, after the US central bank said that US economy has made considerable progress toward dual objectives of maximum employment and price stability, which is a leading indicator for Indian IT revenue growth.

During the day’s trade, the BSE Sensex touched intraday high of 26737.86 and intraday low of 26407.58, while the NSE Nifty touched intraday high of 8225.9 and intraday low of 8121.95.

The top losers of the BSE Sensex pack were Sun Pharmaceutical Industries Ltd. (Rs. 649.45,-4.36%), NTPC Ltd. (Rs. 160.30,-2.02%), Tata Motors Ltd. (Rs. 463.45,-1.94%), ITC Ltd. (Rs. 229.80,-1.42%), Bharti Airtel Ltd. (Rs. 318.45,-1.24%), among others.

On the flip side, Tata Consultancy Services Ltd. (Rs. 2259.50,+2.34%), Axis Bank Ltd. (Rs. 477.10,+2.17%), Oil And Natural Gas Corporation Ltd. (Rs. 206.45,+1.35%), Power Grid Corporation of India Ltd. (Rs. 183.90,+1.10%), Bajaj Auto Ltd. (Rs. 2674.65,+0.95%), were among top gainers on BSE.

On the sectoral front, Healthcare and FMCG stocks emerged as top losers, falling as much as 1.36 per cent and 0.8 per cent respectively.

The market breadth, indicating the overall strength of the market, was flat. On BSE out of total shares traded 2909, shares advanced were 1361 while 1369 shares declined and 179 were unchanged.

Markets open lower as Fed hike interest rate

15/12/2016 09:22

The key domestic benchmark indices opened lower in the morning trading session after the US Federal Reserve raised key interest rates, in line of expectations, by 25 basis points to between 0.50 per cent and 0.75 per cent.

The investors also reacted to the Federal Open Market Committee commentary that signaled of faster pace of tightening than was previously expected, a move which will curb appetite for riskier assets.

Back home, India’s wholesale price index (WPI) eased to five-month low of 3.15 per cent in November as compared to 3.39 per cent in the previous month, bolstering the case for interest rate cuts from the Reserve Bank of India.

At 09:20 a.m, the Bombay Stock Exchange bellwether Sensex was trading at 26552.86 down by 49.98 points or by 0.19 per cent, while the NSE Nifty was at 8165.45 points, trading lower by 17 points or by 0.21 per cent.

The top gainers of the BSE Sensex pack were Adani Ports & Special Economic Zone Ltd. (Rs. 287.30,+1.27 per cent), Wipro Ltd. (Rs. 467.90,+0.61 per cent), Cipla Ltd. (Rs. 570.00,+0.27 per cent), Housing Development Finance Corporation Ltd. (Rs. 1267.00,+0.10 per cent), GAIL (India) Ltd. (Rs. 419.50,+0.10 per cent), among others.

Meanwhile, Axis Bank Ltd. (Rs. 456.10,-2.32 per cent), State Bank of India (Rs. 259.35,-1.28 per cent), Maruti Suzuki India Ltd. (Rs. 5080.00,-1.21 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 201.35,-1.15 per cent), Coal India Ltd. (Rs. 289.00,-1.11 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 379 shares traded, 122 shares advanced, 238 shares declined while 19 were unchanged.

On the global front, Asian stocks were trading lower today after of the US Federal Reserve hiked interest rates for the first time in a year and also indicated of faster pace of tightening than was previously expected. US stocks closed lower in the previous trading session after the Federal Reserve raised key interest rates by 25 basis points to between 0.50 per cent and 0.75 per cent, the first time in a year.

Copper futures little changed ahead of US Fed decision

Copper futures little changed ahead of US Fed decision

14/12/2016 15:35

Copper futures little changed during afternoon trade in the domestic market on Wednesday as investors and speculators build up their positions in the industrial metal as the US dollar eased and investors waited for the Federal Reserve commentary that may cast fresh light over its outlook for the US interest rate hike next year.

Traders were waiting the FOMC (Federal Open Market Committee) meeting and want to see whether the Fed will signal any acceleration in the pace of future rate rises to deal with an expected ramp-up in fiscal spending under President-elect Donald Trump.

At the MCX, copper futures for February 2017 contract is trading at Rs 389.05 per kg, up by 0.04 per cent, after opening at Rs 387.45, against a previous close of Rs 388.90. It touched the intra-day high of Rs 391.45 (at 15:21 hours).

Yellow metal in reverse gear ahead of US Fed meet

Yellow metal in reverse gear ahead of US Fed meet

13/12/2016 13:07

Gold futures fell during afternoon trade in the domestic market on Tuesday as investors and speculators exited their positions in the precious metal on looming worries over an imminent interest rate hike by the US Federal Reserve in a key meeting that begins later in the day.

The US Fed is widely expected to raise interest rates in a two-day meeting on December 13-14, which could boost the US dollar.

Precious metal is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

At the MCX, gold futures for February 2017 contract is trading at Rs 27,597 per 10 grams, down by 0.25 per cent, after opening at Rs 27,635, against a previous close of Rs 27,666. It touched the intra-day low of Rs 27,565 (at 12:54 hours).

Rupee sheds 28 paise against greenback

28/11/2016 14:51

The Indian rupee resumed selling spree against its US counterpart on Monday amid sustained outflows by foreign funds as fears of an imminent Fed rate hike and worries over the impact of the government’s demonetization move on the Indian economy soured risk taking appetite.

At the Interbank Foreign Exchange Market, the local currency was trading down by 28 paise to 68.71 per dollar from a previous close of 68.42 per dollar.

The market experts opined that a rising US dollar has put tremendous pressure on the Indian rupee and it which could be headed for 70 per USD if domestic conditions do not improve soon. The sharp strengthening of the dollar has also kept emerging currencies under pressure.

Meanwhile, the increase in the probability of the a Fed rate hike in the December 2016 policy – has pushed up the dollar index by over 3 per cent in November 2016 to 101.2 from 97.5 through November 2016 and from a low of 92.6 in May 2016.

Rupee extends fall on Fed rate hike fear, weak equity market

21/11/2016 12:05

The Indian rupee continued its losing streak against its US counterpart in early trade on Monday on sustained bouts of dollar demand by importers and banks amid weak local equities.

The local currency remained under pressure as lingering worries over the impact of demonetization of higher value currency notes and hints of a rate hike in December by US Federal Reserve chair Janet Yellen weighed on rupee movement.

At the Interbank Foreign Exchange Market, the local currency was trading down by 09 paise to 68.27 per dollar from a previous close of 68.18 per dollar.

With Fed Chair Janet Yellen signalling that an interest rate hike is in the offing quite soon, traders remain wary of the potential impact of US monetary tightening on capital flows to emerging markets.

Further, the RBI may wait until February to cut interest rates further despite softening inflation as it gets greater clarity over US Fed policy stance in December and assesses the impact of a potential Fed rate hike on the Indian economy and new US President Donald Trump’s policies on financial markets.

Gold bears in control as Fed rate hike looms

Gold bears in control as Fed rate hike looms

24/10/2016 14:41

Gold futures fell during noon trade in the domestic market on Monday as investors and speculators exit positions in the precious metal as growing speculation of a US Federal Reserve interest rate hike in 2016 curbed the lure for the bullion as a store of value.

Federal Reserve Bank of San Francisco President John Williams backed the case for policy tightening once this year while expecting a few more rate hikes in 2017 if the world’s biggest economy continues to perform the way it has been performing in recent times.

A stronger dollar also dimmed the appeal of gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.

At the MCX, gold futures for December 2016 contract is trading at Rs 29,834 per 10 grams, down by 0.37 per cent, after opening at Rs 29,905, against a previous close of Rs 29,946. It touched the intra-day low of Rs 29,821 (at 14:37 PM).