Euro Zone Consumer Price Index (CPIJ rose as expected by 2.8 percent (y-o-y) in April. While the core CPI index rose 1.6 percent (y-o-y) in April as against 1.3 percent in the previous month. Markets had anticipated the index to increase up to 1.5 percent in the last month.
Euro Zone trade deficit narrowed to 0.9 billion Euros in March as compared to the deficit gap of 2.1 billion Euros in February. Markets had expected trade surplus of 1.7 billion Euros in March.
Japan consumer confidence household index declined to 33.4 in April from the previous level of 38.3 in March. Markets had estimated the index to decline up to 37.3 in April.
Spot Gold traded lower around 0.4 percent mainly tracking strength in the US dollar. It touched an intra-day low of S 1493.40/oz and were trading at S1488.45/oz till 4.00 pm ISD. On the MCX, Gold June contract gained around 0.1 percent and touched an intra-day high of 22,034/10 gms today.
Base metals complex delivered a mixed performance on the LME today with lead and nickel trading in the green while copper aluminium and zinc trading in the red. Weak sentiments in the global equity markets, Euro Zone debt concerns and dollar strength exerted pressure on the metal prices. Copper is the worst performer of the day, as the metal declined around 0.4 percent on the IME and touched an intra-day low of 58720/tonne till 4.00pm IST. On the MCX, Copper May contract declined 0.6 percent and touched an intra-day low of 396/kg today.
Poor sentiments in the global equity markets coupled with a stronger dollar led NYMEX crude oil to decline by almost 1 percent today Prices touched an intra-day low of S98.35/bbl and was hovering at S98.78/bbl till 4.00pm IST. On the MCX, crude oil prices declined around 0.2 percent and touched an intra-day low of 4408/bbl today.
Outlook
We expect base metal and crude oil prices to come under pressure in today’s trading session mainly on the back of a stronger dollar, increasing Euro Zone debt concerns and weak sentiments in the global equity markets.
We expect gold to trade lower today mainly due to strength in the US dollar. Moreover, falling oil prices will also decrease inflation-hedge demand for gold.
