Monday, 02 April 2012: China reported positive news on their industrial production over the past weekend, which should give some positive support for global markets and commodities. The current Crude oil price of $105 is about $30 more than its 5 year futures, which indicates that crude oil prices can come down if favorable political events take place to reduce middle-east geo-political tensions, but the chances of such positive events is slim, so we will have to work with constant upward movement in crude oil prices till some event creates genuine risk to crude oil prices.
As of now, a significant amount of risk capital has moved into crude oil, because global economic growth scenario looks more likely than global recession. Meanwhile, Natural Gas prices have been hitting 8 year lows, and huge price variations from $2 per mmbtu in USA to $8 per mmbtu in India/Asia because it is not mobile like crude oil. Continue reading
Posted in Commodity Trading, Forex Trading, Hong Kong Stocks, Indian Stock Market, Renewable Energy Stocks, Stock Market News, US Stock Market
Tagged crude oil prices, energy prices, Global Economy, LNG, Natural gas prices
20 Jan 2011: Wall Street tracked declines in equities around the world after growth in gross domestic product in China accelerated to a 9.8% rate in the final quarter of 2010. The faster-than-forecast growth rate bolstered concerns that China would do more interest-rate hikes to control inflation, thereby reducing Chinese demand for commodities and raw materials, potentially derailing the global economic recovery.
US stocks were in constant search of direction the whole day. For every five stocks climbing, nine fell on the NYSE, with nearly 1.2 billion shares traded. Stocks suffered a big loss in the initial trading hours but managed to move up later in the day as better than expected economic data tried to pull up stocks. A strong dollar and concerns that China might go for further tightening of its macro economic policies put a brake on this. Continue reading
Posted in Commodity Trading, Stock Market News, Stock Trading, US Stock Market
Tagged Caterpillar, China, Comex silver futures, Federal Reserve Bank of Philadelphia, ICICI Bank, India, interest rate hike, jobless claims data USA, Natural gas prices, Nymex crude oil prices, Tata Motors, US Labor Department