World Market Updates – December 11

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World Market Updates: Brought to you in association with Dubai Gold and Commodities Exchange (DGCX) Academy

World Market Updates
World Market Updates

NO SHUTDOWN: US Government signs deal on automatic spending cuts, deficit to reduce by $23 billion.

QUOTE: The learning curve was so steep that she fell of the cliff.

MARKET PULSE

US: Budget agreement to ease automatic spending cuts by about $60 billion over 2 years.
US: Deal to reduce the deficit by $23 billion.
US: Deal to break a 3-year cycle of fiscal standoffs, preventing a government shutdown.
The Fed’s next meeting is on Dec. 17-18.
U.S. budget agreement will boost prospects for tapering the Fed’s stimulus program.
US: A partial shutdown in Oct. lasted for 16 days on disagreement government funding.
Forecast: German inflation rose 0.2 % in Nov. same as last month.
Forecast: Industrial production in the euro area up 0.3 % in Oct. versus fall of 0.5 % in Sept.
Data yesterday showed growth in Italian factory output beat economists’ forecasts.
Canadian dollar gains for 4th day as commodity prices climb.
Aussie snaps gain as jobless rate seen matching most since 2009.
The yen’s 14-day RSI versus the euro was at 26, which indicate price has fallen too rapidly.
US 10-year yielded 2.80 % or 2.14 % spread over the 10-year Japanese yield.

COMMODITIES HEADLINES

WTI Oil Trades Near Six-Week High as U.S. Crude Supplies Decline.
Gold Swings Near Three-Week High as Investors Weigh Dollar, Fed.
Chinalco Copper Output Cuts Set To Help Trim Global Surplus.

INDIAN INR

MARKETS

The rupee slid 0.6 % to 61.3485. The currency rallied 2.2 % over the previous 5 days. 1-month volatility fell 5 basis points to 11.67 %. 3-month offshore non-deliverable rupee forwards fell 0.5 % to 62.65. The 1-year IRS was at 8.46 %.

FACTORS

Rupee fell on the opinion that the U.S. budget deal will support a case for tapering.
US: Budget agreement to ease automatic spending cuts by about $60 billion over 2 years.
US: Deal to reduce the deficit by $23 billion.
US: Deal to break a 3-year cycle of fiscal standoffs, preventing a government shutdown.
The Fed’s next meeting is on Dec. 17-18.

FOREIGN EXCHANGE

MARKETS

The dollar was little changed at $1.3762 per euro, yesterday it touched $1.3795, the weakest since Oct. 29. The dollar fell 0.2 % to 102.70 yen. The euro declined 0.1 % to 141.34 yen from yesterday, when it touched 142.17, the most since October 2008. The U.S. Dollar Index, was at 1,012.98, after falling to 1,012.57 yesterday, the lowest close since Oct. 31. The yen has weakened 19 % in the past year, the biggest decline among 10 traded currencies. The euro has gained 9.5 % in the same period, the best performer, while the dollar has risen 2.9 %.

FACTORS

U.S. budget agreement will boost prospects for tapering the stimulus program.
US: A partial shutdown in Oct. lasted for 16 days on disagreement government funding.
The yen’s 14-day RSI versus the euro was at 26, which indicate price has fallen too rapidly.
US 10-year yielded 2.80 % or 2.14 % spread over the 10-year Japanese yield.
Forecast: German inflation rose 0.2 % in Nov. same as last month.
Forecast: Industrial production in the euro area up 0.3 % in Oct. versus fall of 0.5 % in Sept.
Data yesterday showed growth in Italian factory output beat economists’ forecasts.

(Report compiled by Simarjeet Baweja, Head of Academy at Dubai Gold & Commodities Exchange) 

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