Kaloti Precious Metals-Morning Market Report-Monday, January 16, 2017

Market Daily & Weekly

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

U.S. Stocks Rise, Treasuries Fall on Economic Data

U.S. stocks advanced while Treasuries fell after solid economic data bolstered confidence in the economy and the case for higher interest rates. Financial shares climbed after three of the largest American lenders reported results.

The Nasdaq Composite Index notched a fresh record, while the S&P 500 Index pared a weekly decline that’s seen it slip from an all-time high. The yield on the 10-year Treasury note climbed to 2.39 percent after retail sales picked up and producer prices firmed last month. The dollar fell to the lowest point in almost a month. Gold retreated from a two-month high. U.S. markets are closed Monday for a federal holiday.

The data on the American economy briefly reinvigorated trades that had stalled in recent days amid concern that Donald Trump’s policy proposals won’t translate to immediate economic gains. The pro-growth agenda he has only broadly outlined sparked rallies in equities and the dollar, while sending haven assets lower in the month after his election. Those moves stalled after the Federal Reserve signaled in December that faster growth could force it to lift rates higher than markets had been expecting.

“Since Trump was elected expectations were set very high,” said Andrzej Pioch, who helps oversee $1.3 billion as a money manager at Legal & General Investment Management Ltd in London.

The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, fell for a third day, bringing its decline in the week to 0.8 percent. It’s down three straight weeks after surging following the election.

The Japanese yen rose for a fifth day versus the dollar to 114.64. The euro climbed a third day to $1.0638.

Turkey’s lira slid 0.7 percent and is heading for a 3.9 percent weekly loss.

Oil posted its first weekly slide in more than a month as traders await proof that OPEC producers have cut production.

West Texas Intermediate crude futures slipped 1 percent to $52.49 a barrel in New York.

Gold futures dropped 0.2 percent to $1,197.70 an ounce, paring a third weekly gain.

Copper futures rose 0.7 percent to settle at $2.69 a pound in New York. The contract touched a five-week high during the session.

 Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-16th-january-2017