Tuesday, April 3, 2018

Stock & Commodities Related News.

US STOCKS-Wall Street set to open higher after tech-fueled slide - Reuters News
03-Apr-2018 09:16:04 PM
Tesla rises after robust Model 3 production numbers
Spotify to debut on NYSE
Viacom dips on report CBS plans to bid below current value
Futures up: Dow 0.65 pct, S&P 0.69 pct, Nasdaq 0.96 pct
Adds comments, details, updates prices
By Sruthi Shankar
April 3 (Reuters) - Wall Street was on track to open higher on Tuesday, recovering from a technology stocks-driven selloff a day earlier that pushed the Dow and the S&P 500 below important technical levels amid renewed global trade concerns.
Facebook, Amazon and Netflix Alphabet rose in premarket trading.
Monday's slide also saw the three main U.S. indexes erasing their gains for the year and the S&P 500 closing below its 200-day moving average for the first time since Britain's vote to leave the European Union in June 2016.
If current gains hold, the S&P 500 would open at 2,594.25, above its 200-day moving average. 
"What's going on with the trade policy is a real concern for investors," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"It goes back and forth almost everyday and when you back away from the paradigm of free trade, then the markets move unfavorably."
China on Sunday decided to impose extra tariffs on 128 U.S. products, deepening a dispute between the world's two biggest economies, in retaliation to U.S. President Donald Trump's decision to impose tariffs on steel and aluminum.
The Trump administration is expected sometime this week to publish a list of Chinese goods that could be subjected to new U.S. tariffs.
At 8:33 a.m. ET, Dow e-minis  were up 154 points, or 0.65 percent, with 48,393 contracts changing hands.
S&P 500 e-minis were up 17.75 points, or 0.69 percent, with 205,541 contracts traded.
Nasdaq 100 e-minis were up 61.25 points, or 0.96 percent, on volume of 65,284 contracts.
Amazon.com Inc rose 1 percent premarket, after closing down more than 5 percent on Monday after Trump's latest attack on the online retailer.
"You're still going to see negative attitude (in tech sector), but at some point you have to return to fundamentals and we're still looking at a pretty good earnings growth," said Brown.
Investors will be able to buy and sell shares in the Swedish music streaming service Spotify in the New York Stock Exchange's first-ever direct floor listing.
Tesla shares rose 2.6 percent after the electric car maker said that it built 2,020 Model 3 sedans in the last seven days of March, would produce the same number next week and would see output climb rapidly through the second quarter.
Viacom Inc fell 5.4 percent after Reuters reported CBS Corp planned to make an all-stock offer that valued the media company below its current market valuation. CBS shares rose 2.5 percent.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

UPDATE 2-China ready for proportionate response to U.S. tariffs- envoy - Reuters News
03-Apr-2018 07:25:09 PM
Adds Chinese Foreign Ministry comment
BEIJING, April 3 (Reuters) - China will take counter-measures of the "same proportion" and scale if the United States imposes further tariffs on Chinese goods, China's ambassador to Washington said, amid growing fears of an impending trade war.
Cui Tiankai made the comments ahead of what is expected to be the announcement this week of U.S. tariffs on $50 billion to $60 billion in Chinese imports following an investigation under Section 301 of the 1974 U.S. Trade Act.
"If they do, we will certainly take countermeasures of the same proportion, and the same scale, same intensity," Cui said in an interview posted on the website of China Global Television Network (CGTN) and broadcast on state television on Tuesday.
The U.S. tariffs are expected to target products benefiting from Beijing's "Made in China 2025" industrial development programme, although it may be more than two months before the import curbs take effect, U.S. officials have said.
China on Sunday announced tariffs on $3 billion in imports of U.S. food and other goods in response to U.S. tariffs on imports of aluminium and steel, a skirmish that investors fear is a prelude to a broader trade war.
"China does not provoke a trade war, and doesn't want to fight a trade war, but we also aren't afraid of a trade war," Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing.
The Section 301 investigation initiated by U.S. President Donald Trump is focused on accusations of theft of intellectual property and forced technology transfer by China, charges Beijing denies.
Cui said China has been bolstering its protection of intellectual property rights.
"China has been strengthening its efforts and strengthening our legal system on this particular issue, and we are making good progress," he said.
(Reporting by Lusha Zhang, Tony Munroe and Michael Martina; Editing by Nick Macfie)

UPDATE 4-Oil struggles to retain gains as trade war concerns build - Reuters News
03-Apr-2018 08:10:27 PM
Russian crude output hits 11-month high, almost 11 mln bpd
Saudi Arabia expected to cut its physical crude prices
Market awaits U.S. production data for fresher cue 
Updates prices
By Amanda Cooper
LONDON, April 3 (Reuters) - Oil steadied on Tuesday, after the price posted its biggest one-day fall in almost a year the previous day, although higher Russian output and Saudi Arabia possibly cutting its selling prices acted as a drag. 
The mood across financial markets was cautious after China announced last week it would slap extra tariffs on 128 U.S. products, deepening a dispute between the world's two biggest economies and stoking concerns about the impact on global growth. 
Brent crude futures were last up 6 cents on the day at $67.70 a barrel by 1153 GMT, while West Texas Intermediate futures were up 12 cents at $63.13 a barrel.
The oil price fell by more than 3 percent on Monday, marking its largest one-day fall since June, following a sharp sell-off on Wall Street as the tech sector came under fire.
Last week, Brent rose to $71 a barrel, close to its highest so far this year, but failed to hold on to that level.
"Last week, we had a test of the year's (price) high and oil failed to break that, so from a trading perspective ... with a possible trade war looming and negative sentiment building, and a possible rise in U.S. inventories later this week, this fits with a picture of profit-taking," ABN Amro chief energy economist Hans van Cleef said.
U.S. crude inventories, widely viewed as a litmus test of the broader trend in global inventories, are expected to have risen for a second week in a row, according to a Reuters poll on Monday 
The American Petroleum Institute releases its weekly inventory data later on Tuesday and the U.S. government releases its figures on Wednesday. Inventories are expected to have risen by 1.7 million barrels in the week to March 30.
Money managers raised their bets on a sustained price rise in Brent crude to the highest level on record last week, bringing total long holdings of futures and options to the equivalent of more than 615 million barrels. 
"With excessive hedge fund positions still looming over the market, profit-taking should weigh on oil prices over the coming weeks," Julius Baer head of commodities and macro research Norbert Ruecker said.
There was also pressure coming from the physical market, where top exporter Saudi Arabia is expected to cut prices for all the crude grades it sells to Asia in May, while output from Russia, the world's largest producer, hit an 11-month high.
Prices for physical barrels of oil in the North Sea are around their lowest since last June, as extensive refinery maintenance across the region eats into demand. 
(Additional reporting by Meng Meng in Beijing and Henning Gloystein in Singapore; Editing by Susan Fenton and Louise Heavens)

PRECIOUS-Gold prices slip after Monday's surge - Reuters News
03-Apr-2018 07:39:38 PM
Gold rose 1.3 percent on Monday
Struggles to break from trading range
Stock market turmoil, trade war fears support gold
Funds raise bets on higher prices
(Updates prices)
By Peter Hobson
LONDON, April 3 (Reuters) - Gold prices edged lower on Tuesday, having surged in the previous session as falling U.S. stock markets and fears of a global trade war pushed investors towards safer assets.
Spot gold was down 0.3 percent at $1,337.07 an ounce at 1231 GMT after rising 1.3 percent on Monday. U.S. gold futures were 0.4 percent lower at $1,341.20 an ounce.
"It's a correction after yesterday's strong move," said Commerzbank analyst Carsten Fritsch.
"There's a lack of conviction that prices will rise much further or can sustain levels of $1,350. Profit taking started here so we are back below $1,340."
Gold has struggled to break from a trading range of $1,310- $1,360 since the start of the year.
"It's going to take a significant trigger to push it beyond this range," said Danske Bank analyst Jens Pedersen.
European stock markets continued to fall on Tuesday, led by technology shares, but Wall Street futures suggested that U.S. markets would open higher. 
The Trump administration is meanwhile expected this week to unveil a list of advanced technology Chinese imports targeted for U.S. tariffs after Beijing on Monday raised tariffs on 128 U.S. products, escalating a dispute between the world's two largest economies. 
Gold is often used as a safe place to park assets during times of financial or political uncertainty.
Funds have raised their bets on higher prices, with the net long position on the Comex exchange rebounding from a three-month low. 
Speculative investors have room to expand their long positions further, which would help drive prices higher, analysts at Citi said in a note.
Higher market volatility and rising tension between Washington and Beijing will likely hold gold above $1,300 throughout 2018, they said.
"We assign a 30 percent probability that gold prices can scale $1,400 an ounce this year."
Momentum indicators suggested gold prices would rise, with technical Fibonacci support at $1,317.25 and resistance at $1,361.80, analysts at ScotiaMocatta said in a note.
In other precious metals, spot silver was down 0.4 percent at $16.55 an ounce after rising 1.8 percent in the previous session.
Platinum was flat at $937.70 an ounce.
Palladium was up 0.4 percent at $938.45 after touching $927.75, its lowest since Oct. 10.
(Additional reporting by Swati Verma in Bengaluru, editing by Louise Heavens and David Evans) 

METALS-Copper hits one-week high, shrugs off trade dispute - Reuters News
03-Apr-2018 08:13:43 PM
By Pratima Desai
LONDON, April 3 (Reuters) - Copper prices touched one-week highs on Tuesday as investors bought on expectations the escalating trade dispute between China and the United States would not undermine flows of metal.
Benchmark copper on the London Metal Exchange was untraded in official rings, but bid up 1.1 percent at $6,790 a tonne from an earlier high at $6,828.
China on Sunday announced tariffs on $3 billion in imports of U.S. food and other goods in response to U.S. tariffs on imports of aluminium and steel.
"China's response wasn't as aggressive as some investors were thinking," said Commerzbank analyst Eugen Weinberg. 
"That suggests the impact on China's metal imports is unlikely to be dramatic. After the recent price drop investors are seeing some value."

TARIFFS: The U.S. is this week expected to announce tariffs on $50 billion to $60 billion of Chinese imports following an investigation under Section 301 of the 1974 U.S. Trade Act.
PROTRACTED: "Over the course of April, we think investors will come to the conclusion that the trade issue is going to be protracted and complicated and will likely be "defanged" as it plods along," INTL FCStone analyst Edward Meir said in a note.
"Having fired off the initial round of tariffs, both China and the U.S. will now engage in serious talks in an attempt to lower the temperature. As a result, the panic that seems to be hitting the markets every time the trade issue is brought up will likely subside."
STOCKS: Traders expect higher inventories of copper, up 20 percent at 383,025 tonnes since March 22, in LME approved warehouses to cap price gains. 
TECHNICALS: Upside resistance for copper prices is at $6,830, near the 21-day moving average. Support is at $6,700, near the 200-day moving average.
ZINC: Concern about the nearby availability of zinc on the LME market due to one company holding between 50 and 79 percent of warrants has created a premium of $12 a tonne for the cash contract over the three-month forward. Three-month zinc slipped 0.1 percent to $3,272 a tonne.
NICKEL: Prices were up 2.3 percent at $13,600 a tonne from an earlier two-week high at $13,660. Nickel's gains have been fuelled by falling stocks in warehouses monitored by the Shanghai Futures Exchange. 
RESISTANCE: A break of key resistance at $13,450, where the 21-day and 55-day moving averages met, triggered a flurry of buying by funds.
PRICES: Aluminium was up 1.1 percent at $2,026 a tonne, lead added 0.2 percent to $2,399 and tin gained 1.1 percent to $21,300.
(Editing by Mark Potter and Louise Heavens)

CBOT Trends-Wheat up 5-6 cents, soy up 7-10 cents, corn steady-up 2 cents - Reuters News
03-Apr-2018 09:04:11 PM
CHICAGO, April 3 (Reuters) - Following are U.S. trade expectations for the resumption of the grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Tuesday.

WHEAT - Up 5 to 6 cents per bushel
Rising on U.S. Agriculture Department report that showed the U.S. winter wheat crop was rated 32 percent good to excellent compared to 51 percent a year earlier. K.C. wheat futures notched the biggest gains overnight, rising 2.4 percent.
CBOT May soft red winter wheat last traded up 5-3/4 cents at $4.52 per bushel. K.C. May hard red winter wheat was last up 11-1/4 cents at $4.78-3/4 and MGEX May spring wheat  was last up 3-3/4 cents at $5.77-1/4.

CORN - Steady to up 2 cents per bushel
Consolidation trade expected after market failed to push through March high during early rally on Monday. Wheat gains, concerns about cold weather delaying early planting in U.S. Midwest continue to underpin prices.
CBOT May corn last traded up 1/4 cent at $3.87-1/2 a bushel.

SOYBEANS - Up 7 to 10 cents per bushel
Technical buying supports soybeans after May contract SK8 found support near 40-day moving average overnight. Consolidation trade noted near 30-day moving average.
CBOT May soybeans SK8 last traded up 7-3/4 cents at $10.43-1/4 per bushel.

(Reporting by Mark Weinraub; Editing by Bernadette Baum)

China grants more subsidies to soy farmers as it cuts corn stocks - Reuters News
03-Apr-2018 06:16:40 PM
BEIJING, April 3 (Reuters) - Soybean farmers in China's northeastern provinces will get higher subsidies than corn producers this year as Beijing continues a policy set last year to reduce its huge corn stockpile, the government said on Tuesday. 
Stocks of corn in China reached around 250 million tonnes in 2017, a legacy from its near-decade long stockpiling system that was only abandoned in 2016. 
Beijing will give more subsidies to soybean growers than corn farmers in Liaoning, Jilin, Heilongjiang, and Inner Mongolia provinces, the Ministry of Agriculture and Rural Affairs said in a document released on its website. 
China included cutting corn acreage and lifting soybean acreage in a five-year plan issued in 2016, part of the country's efforts to overhaul the world's largest agriculture sector. 
Farmers will also get subsidies from the government to rotate their plantings as well as to leave some land fallow. Such subsidies will cover 30 million mu (2 million hectares) of land this year, the document said, without giving further details on the subsidies. 
China started giving subsidies to encourage farmers in the northeast to rotate their corn plantings with other crops in 2016 as part of a push to rebalance grain stocks.
Beijing will also give subsidies to farmers to purchase agriculture machinery and equipment in areas including irrigation and planting. 
Those treating animal waste, using organic fertilizer in growing vegetables and fruits, and recycling land films will also receive subsidies from the government, according to the document. 
(Reporting by Hallie Gu and Josephine Mason
Editing by Manolo Serapio Jr.)

20180402 E-Mini S&P Technical View.

E-Mini S&P Technical: 
Weak. Only 3 green candles out of 15 candles.
For strength, prices need to hold above 2680. 
For further weakness prices need to break below 2529.