BULLION:
Gold trading steady above $1200/Oz on Friday as the dollar
fell against the yen on fears that US President Donald Trump would take up
trade issues with Japan as the markets braced for another round of U.S.
tarriffs on China. The dollar extended losses against the yen on Friday after
CNBC television reported on Thursday that U.S. President Donald Trump told a
Wall Street Journal columnist he might take on trade issues with Japan. Another
big worry for investors was the end of a public consultation period over trade,
after which U.S. President Donald Trump could impose tariffs on an additional
$200 billion of Chinese goods. China’s commerce ministry warned that the
country would retaliate against any new tariff measures.. Trump had said on
Wednesday that the United States was not yet ready to come to an agreement with
China. Investors also awaited news from U.S.-Canada talks about revamping the
North American Free Trade Agreement (NAFTA). A few stubborn issues stood in the
way of a deal, including dairy, protection for media companies, and how to
solve future trade disputes. Markets will be closely watching a U.S. employment
report due on Friday for clues on the pace of interest rate increases by the
Federal Reserve. On Thursday, the ADP National Employment Report showed private
payrolls increased by 163,000 jobs last month. Economists polled by Reuters had
forecast private payrolls increasing by 190,000 jobs last month. Emerging
markets have been hit by financial crises in Argentina and Turkey. In
Indonesia, the central bank has intervened in recent weeks to stem the rupiah’s
slide.
METALS:-
London copper slid on Friday with the market facing a second
week of losses on concerns about demand, as a trade war between the United
States and top metals consumer China intensifies. Copper has risen for the past
two sessions. Relatively positive economic data in Europe helped boost
sentiment in the market. U.S. President Donald Trump has said he is prepared to
quickly ramp up the trade war with China and has told aides he is ready to
impose tariffs on $200 billion more on Chinese imports as soon as a public
comment period on the plan ends. China will be forced to retaliate if the
United States implements any new tariff measures, China’s commerce ministry
warned on Thursday. Road access to MMG Ltd’s Las Bambas copper mine in Peru,
which was blocked by protesters last week, has been restored and company
logistics are operating normally, the company said late on Wednesday. European
customers will avoid deals with Russia’s United Company Rusal, under U.S.
sanctions, when the industry meets in Berlin next week to seal 2019 metal
supply agreements
ENERGY:-
Oil trading flat on Friday after it declined on Thursday,
with US prices at their lowest settlement in more than two weeks, pressured by
concerns over a potential decline in global demand on the back of the U.S.
trade dispute with China and economic woes in emerging markets. Price pressures
also included sizable weekly gains in U.S. stockpiles of gasoline and
distillates, which include heating oil, outweighing support from a hefty
decline in domestic crude inventories as well as ongoing expectations for
tighter crude supplies tied to U.S. sanctions on Iranian oil that begin in
early November. Trade tensions have also been a drag on energy this week as the
threat of an economic slowdown due to a new tariffs has weighed on commodities
broadly. The Energy Information Administration reported Thursday that domestic
crude supplies fell by 4.3 million barrels for the week ended Aug. 31. That was
larger than the 2.5 million-barrel fall expected by analysts polled by reuters
and the decrease of 1.2 million barrels reported by the American Petroleum
Institute Wednesday. Supply data were released a day later than usual due to
Monday’s Labor Day holiday. Gasoline stockpiles rose 1.8 million barrels for
the week, while distillate stockpiles added 3.1 million barrels, according to
the EIA. Reuters survey forecast a supply decline of 1.5 million barrels for
gasoline, but distillates were expected to be unchanged.
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