Tuesday, May 8, 2018

Stock & Commodities Related News.

US STOCKS-Wall St set to open lower ahead of Trump Iran decision - Reuters News

08-May-2018 08:43:15 PM

  • Comcast prepares all-cash bid for Fox assets
  • Citigroup rises after ValueAct raises stake
  • Trump to decide on Iran nuclear deal at 2 p.m. ET
  • Futures down: Dow 0.15 pct, S&P 0.21 pct, Nasdaq 0.2 pct

Adds comments, details, updates prices

By Medha Singh

May 8 (Reuters) - U.S. stock indexes were on track to open lower on Tuesday as investors braced for President Donald Trump's decision on whether to withdraw from the Iran nuclear deal.

A U.S. withdrawal would tighten economic sanctions on Iran, curtailing the country's output that could bolster this year's 13 percent oil rally.

Crude prices were down about 1 percent - easing from 2014 highs, which had boosted Wall Street in the past two sessions - ahead of Trump's decision at 1800 GMT (2:00 p.m. ET).

"(Trump's decision) has been so well covered, it's probably all in the price by now. And most recent commentary seems to be that after all the bluster, he may only partially withdraw from the deal," said Frances Hudson, global thematic strategist at Aberdeen Standard Investments.

At 8:33 a.m. ET, Dow e-minis were down 37 points, or 0.15 percent. S&P 500 e-minis were down 5.5 points, or 0.21 percent and Nasdaq 100 e-minis were down 13.75 points, or 0.2 percent.

"Depending on the magnitude of energy markets being affected, it could spillover to the rest of equities in general," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

Shares of Comcast fell 1.8 percent premarket after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox has agreed to sell to Disney for $52 billion.

Fox's shares rose 2.4 percent. Disney, which is due to report its results after markets close, was down 0.7 percent.

Snap Inc gained 1.6 percent after hiring Tim Stone, who had led Amazon's $13.7-billion integration with Whole Foods, as its chief financial officer.

Dish Network dipped 1.2 percent after its quarterly revenue came below expectations due to a drop in its legacy pay-TV subscriptions.

Citigroup advanced 1.8 percent after activist investor ValueAct invested $1.2 billion in the bank, citing its low risk and reliable revenue.

(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)

 

 

 

UPDATE 4-Oil backs off 2014 highs ahead of Trump Iran decision - Reuters News

08-May-2018 08:04:40 PM

  • Trump decision on Iran nuclear deal expected 1800 GMT on Tues
  • Iran crude exports could be hit if U.S. pulls out of deal
  • U.S. crude back below $70 per barrel

Updates prices

By Amanda Cooper

LONDON, May 8 (Reuters) - Oil retreated from its highest level in 3-1/2 years on Tuesday ahead of an announcement by President Donald Trump later in the day on whether the United States will reimpose sanctions on Iran.

Should Trump pull the United States out of a multi-nation agreement on Tehran's nuclear programme, Iranian crude exports might be affected, but analysts said it would also fan the flames of geopolitical tensions in the Middle East, which is home to a third of the world's daily oil supply.

Brent crude futures were down 69 cents at $75.48 a barrel by 1143 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 74 cents to $69.99 a barrel.

Trump said on Monday that a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00 p.m. EDT (1800 GMT) on Tuesday, four days earlier than expected.

"Until we get more clarity on Trump's intentions, we are unlikely to get further upside on crude," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.

"If we assume he goes back to 2012 sanctions, we estimate a loss of 0.4 million barrels a day of Iranian supply based on recent Iranian export numbers. Anything larger than this will be bullish," he added.

Trump is likely to either announce he will not be renewing a waiver on sanctions or will restate his opposition to the nuclear agreement, Barclays Research analysts said in a report.

"The geopolitical consequences of a possible dismantling of the (Iran deal) would likely to play a larger and long-lasting role in pushing oil prices higher than short-term policy uncertainty," the bank said.

If Trump restores core U.S. sanctions, under U.S. law he must wait at least 180 days before imposing their furthest-reaching measure, which is to target banks of nations that fail to significantly cut their purchases of Iranian oil.

"If all current importers of Iranian crude oil decide to ask for exemptions and thus continue to import Iranian crude they would still need to reduce imports by 20 percent every 180 days," SEB head of commodity research Bjarne Schieldrop said.

"It will have limited impact on the 2018 balance as it takes time to revive the sanctions. It would hamper investments in Iranian oil resources thus leading to a potentially tighter future oil market. This is probably why we have seen oil prices for longer-dated contracts rise just as much as the front end of the crude oil curve lately."


Under the deal to limit Iran's nuclear programme, formally known as the Joint Comprehensive Plan of Action, the United States agreed to ease a series of sanctions on Iran and has done so under a string of "waivers" that effectively suspend them.

(Additional reporting by Aaron Sheldrick in TOKYO; Editing by Louise Heavens)

 

 

 

PRECIOUS-Gold slips as dollar hits 2018 high, Iran tensions underpin - Reuters News

08-May-2018 08:38:30 PM

  • Market awaits Trump decision on Iran nuclear deal
  • Spot gold may revisit May 1 low of $1,301.51/oz - technicals

(Updates prices, adds details)

By Maytaal Angel

LONDON, May 8 (Reuters) - Gold slipped on Tuesday as the dollar surged to a new 2018 high, though the precious metal's losses were limited by worries the United States may be set to pull out of a key nuclear accord with Iran.

U.S. President Donald Trump will announce at 1800 GMT whether Washington will withdraw from a deal that eased economic sanctions on Iran in exchange for Tehran limiting its nuclear programme.

A decision to leave the accord could raise risk aversion in the broader markets, helping gold, seen as a safe asset that holds its value in times of geopolitical turmoil.

Still, gold has been under pressure over the last three weeks with the dollar having rallied around 4.5 percent. A strong dollar makes dollar-priced gold costlier for non-U.S. investors.

"A stronger dollar has created headwinds for gold but we don't see the dollar going much higher on a medium-term basis and in terms of geopolitics, there are some factors to keep an eye on," said Jens Pederson, senior analyst at Danske Bank.

"It's not our base case that the (Trump announcement) will turn out to be a big market moving event but the risk (is there) that Iran will be hit with sanctions and (so we) could see gold buying again."

Spot gold was down 0.2 percent at $1,311.39 per ounce at 1225 GMT. The precious metal has lost some 3.5 percent of its value over the last three weeks.

U.S. gold futures for June delivery were down 0.2 percent at $1,311.50.

Against a basket of rivals, the dollar surged to a 2018 high as expectations that other major central banks would follow the footsteps of the U.S. Federal Reserve in normalising monetary policy have been dashed.

Gold in 2018 will deliver its strongest annual price performance in five years, GFMS analysts forecast on Tuesday, as political uncertainty drives investment in bars and bullion-backed investment funds.

India's gold imports in April fell for a fourth straight month from a year ago to 57 tonnes, on subdued demand after local prices jumped to 21 month highs, provisional data from consultancy GFMS and bank dealers showed.

Spot gold may revisit its May 1 low of $1,301.51 per ounce as it twice failed to break resistance at $1,317, Reuters technical analyst Wang Tao said.

Silver rose 0.3 percent to $16.49 an ounce, while platinum edged up 0.1 percent at $912.40, having hit its highest since April 25 in the last session.

Palladium rose 0.4 percent to $975.72 an ounce, after hitting on Monday its highest since April 27.

 

(Additional reporting by Apeksha Nair in Bengaluru, editing by Ed Osmond and Jon Boyle)

 

 

CBOT Trends-Wheat mixed, soy up 5-7 cents, corn steady-up 2 cents - Reuters News

08-May-2018 09:08:33 PM

CHICAGO, May 8 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Tuesday.

 

WHEAT - Mixed, down 2 cents to up 2 cents per bushel

  • Forecasts for rain in key growing regions of Australia and the Black Sea as well as improving weather in U.S. Plains pressuring wheat market. Short-covering to limit declines.
  • The CBOT reported no May wheat or K.C. May wheat deliveries. The MGEX reported no May  spring wheat deliveries.
  • CBOT July soft red winter wheat traded down 1/2 cent at $5.11 per bushel. K.C. July hard red winter wheat was up 1/4 cent at $5.39-3/4 and MGEX July spring wheat was up 1 cent at $6.12 a bushel.

CORN - Steady to up 2 cents per bushel

  • Technical buying expected after benchmark CBOT July contract found support overnight near 38.2 percent retracement point on Fibonacci chart tracking recent rally to 9-1/2-month high. U.S. Agriculture Department report that showed corn planting progress at a better-than-expected 39 percent complete seen as limiting buying opportunities.
  • The CBOT reported 314 deliveries against May corn futures.
  • CBOT July corn traded up 1-3/4 cents at $4.02-1/2 a bushel.

SOYBEANS - Up 5 to 7 cents per bushel

  • Mild round of bargain-buying expected after two straight days of sharp declines pushed prices to their lowest in more than a month. CBOT July soybean futures rose through their 20-day and 200-day moving averages during overnight trading.
  • Deliveries against CBOT May soybeans totaled 68 contracts. The CBOT reported no May soymeal deliveries and no May soyoil deliveries.
  • CBOT July soybeans traded up 6 cents at $10.17-1/2 per bushel.

(Reporting by Mark Weinraub
Editing by Jeffrey Benkoe)

 

 

 

VEGOILS-Palm falls from 2-week high on weaker demand expectations - Reuters News

08-May-2018 07:46:20 PM

  • Palm earlier hit 2-week top of 2,400 rgt/T
  • Malaysia's early May exports seen weak - trader
  • Markets closed on Wednesday for Malaysia election day

Updates with closing prices, quote

By Emily Chow

KUALA LUMPUR, May 8 (Reuters) - Malaysian palm oil futures rose to a two-week high in early trade on Tuesday, before falling back to end lower on speculation of weaker demand so far in May.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dipped 0.1 percent to 2,381 ringgit ($603.09) a tonne at the close of trade, snapping two previous days of gains.

Trading volume stood at 50,670 lots of 25 tonnes each on Tuesday evening.

"The outlook is that exports for the first ten days of May are bad," said a futures trader from Kuala Lumpur, explaining that May demand is forecast to slump from the previous month as Malaysia's crude palm oil export tax is reinstated this month.

Malaysia, the world's second-largest palm oil producer after Indonesia, set its crude palm oil export tax at 5 percent for May, after extending a duty suspension implemented at the start of 2018 until the end of April.

Malaysia first suspended its export tax on crude palm oil in early January for three months to increase demand and boost prices, as it expected stockpiles to grow in 2018.

The same trader added that the market was also squaring positions ahead of Malaysia's national elections on Wednesday, which has been declared a public holiday. Markets will resume trading on Thursday.

Palm had earlier rose as much as 0.7 percent to 2,400 ringgit, its highest since April 26, on expectations of slowing output.

Palm oil output for April is forecast to remain flat at 1.57 million tonnes, following a surge in March when output rose to its highest level for that month since 2000, according to a Reuters poll.

In other related oils, the Chicago July soybean oil contract was down 0.3 percent, while the September soybean oil on China's Dalian Commodity Exchange fell 0.2 percent.

The Dalian September palm oil contract was up 0.3 percent.

Palm oil is impacted by movements in rival edible oils as they compete for a share in the global vegetable oils market.

 

 

 

FOREX-Widening cracks in euro sends dollar to 2018 highs - Reuters News

08-May-2018 08:02:30 PM

  • Trump announcement on Iran nuclear deal key event risk
  • Australian dollar, Canadian dollar lead losers

Updates prices, adds detail

By Saikat Chatterjee

LONDON, May 8 (Reuters) - The dollar surged to a 2018 high against its rivals on Tuesday as a rout of the euro prompted traders to buy the greenback despite some concerns its rally may have been too quick.

Against a basket of rivals, the dollar has surged about 4.5 percent in three weeks as expectations that other major central banks would follow the U.S. Federal Reserve in normalising monetary policy have been disappointed.

The latest leg in the dollar's run higher came as sterling and the euro came under renewed pressure, the former from waning expectations of a Bank of England rate increase this week and the latter from prospects of early elections in Italy.

"The big risks from the sovereign bond markets in the world is about the growing Italian election concerns and the markets love nothing more than a good momentum story," said Neil Mellor, a senior FX strategist at BNY Mellon in London.

President Sergio Mattarella called on Monday for Italy's bickering parties to rally behind a neutral government. Italy's two largest parties, the far-right League and anti-establishment 5-Star Movement, came out against the proposal.

That pushed the euro down by half a percent to $1.18620, its lowest levels since late December. It is already 1 percent lower since the start of the year, a big reversal from 2017 when it notched up double-digit gains against the dollar.

On Tuesday, the dollar extended recent gains and rose 0.4 percent to 93.13 against the basket -- in which the euro holds the biggest weight -- as markets further cut short bets against it built up in recent months. The dollar has now risen for three consecutive weeks.

A Citi gauge on European economic data surprises is meanwhile languishing at its lowest levels in 5-1/2 years.

 

DOLLAR SQUEEZE

Some of the dollar's biggest gains on Tuesday came against the euro and the Australian dollar which declined by 0.4 percent and 0.8 percent respectively.

The sell-off in these currency pairs rippled through the foreign exchange markets and prompted investors to unwind some of the best performing trades this year.

They include buying the Norwegian currency against the Swedish crown, which on Tuesday fell half a percent.

Short dollar positions saw a further squeeze with latest positioning data keeping the greenback well supported.

On a two-weekly basis, short dollar bets saw the biggest position unwind in six months.

"For the time being there is no possibility of avoiding U.S. dollar, which is also due to the fact that the likelihood of an imminent monetary policy normalisation in other parts of the world is falling," Commerzbank analysts wrote in a note.


But despite the dollar's rally, the Japanese yen was still holding its own against the greenback and other majors indicating that underlying caution remained as investors focused their attention on U.S. President Donald Trump's decision about the future of an international nuclear agreement with Iran.

Trump is expected to make an announcement on the nuclear deal at 1800 GMT. A U.S. withdrawal from the deal, which eased economic sanctions in exchange for Tehran limiting its nuclear programme, would impact risk sentiment in the broader markets.

"It is an event risk and has the potential to make risk sentiment which is already cautious more unstable," said Manuel Oliveri, a currency strategist at Credit Agricole in London.

(Reporting by Saikat Chatterjee; Additional reporting by Sujata Rao; Editing by Catherine Evans)

Stock & Commodities Related News.

GLOBAL MARKETS-Oil hovers near 3 1/2-yr peak, Asia shares up ahead of Trump announcement - Reuters News

08-May-2018 02:33:11 PM

  • U.S. crude stays near $70 on worries U.S. may exit nuclear deal
  • Dollar near 2018 high on relative strength of US growth
  • Resilient tech sector underpins Asian shares
  • China shares rise as U.S.-China trade talks set to resume
  • European stocks seen up 0.1-0.2 pct

By Hideyuki Sano and Andrew Galbraith

TOKYO/SHANGHAI, May 8 (Reuters) - Oil prices eased slightly on Tuesday, a day after hitting 3-1/2 year highs, as investors braced for President Donald Trump's decision on whether to withdraw the United States from the Iran nuclear deal, a move that could disrupt global oil supply.

European shares are seen steady to slightly firmer after Asian shares picked up, helped by technology stocks as generally upbeat earnings overcame weakness in the global smartphone market and concerns about more regulation.

Spread-betters expect Britain's FTSE to rise 0.2 percent and Germany's Dax to inch up 0.1 percent.

U.S. West Texas Intermediate (WTI) crude futures on Monday rose above $70 for the first time since November 2014, putting it more than 18 percent above this year's low touched in February.

On Tuesday, some of those oil-price gains were pared as traders took profit after Trump said in a tweet he would announce his decision on the nuclear deal at 1800 GMT Tuesday.

"The oil market has priced in the high likelihood of Trump withdrawing from the nuclear deal with Iran. If he is going to impose sanctions similar to those the U.S. had in 2012, that would likely cause a shortage in oil," said Tatsufumi Okoshi, senior commodity economist at Nomura Securities.

Adding to market pressures, falls in Venezuelan oil production due to problems at the country's oil company PDVSA also added to the rally.

U.S. crude futures last traded at $70.11 per barrel, down 0.9 percent from Monday's settlement price.

Global benchmark Brent crude futures stood at $75.64 per barrel, down 0.7 percent, having risen as high as $76.34 on Monday.

While caution on Trump's statement kept investors edgy in early trade, technology firms helped to generate gains for Asian equities.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6 percent, with information technology shares rising 1.3 percent. Japan's Nikkei was 0.2 percent higher.


SOARING VALUATIONS

Some analysts cautioned that the rally in technology shares could face a short-term correction as valuations soar.

Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo, noted that technology shares have been moving higher, taking up a larger share of indices as more money flows into the exchange trade funds (ETF) market.

There is currently a "positive feedback loop", but if some sort of unforeseen negative event takes place, it "may turn into a negative feedback loop," he said.

China's blue-chip CSI300 index rose 1.3 percent after the White House said on Monday that U.S.-China trade talks would resume next week.

On Tuesday, China reported exports and imports jumped in April, beating forecasts, but the news did not impact markets.

On Wall Street on Monday, the S&P 500 gained 0.35 percent, boosted by Apple's sixth straight day of gains.

In currency markets, the dollar broadly held firm on the prospect of solid U.S. economic growth, helped partly by Trump's tax cuts and spending, pointed to further rises in U.S. interest rates down the road.

That prompted investors to buy back dollars they had sold earlier this year on worries about Trump's protectionist trade policies.

The euro hit a four-month low of $1.1897 on Monday and last stood at $1.1930.

Against the yen, the dollar stood little changed at 108.93 yen, off its three-month high of 110.05 yen.

The combination of higher oil prices, a strong dollar and higher U.S. rates is risky for some emerging market assets as it could significantly worsen their trade balance and also encourage investors to shift funds to higher-yielding U.S. assets.

"The emerging market currencies are now playing catch up with some of the excessive losses seen in developed currencies ... Asian currencies have also fallen victim to the latest round of USD buying momentum," Jameel Ahmad, Global Head of Currency Strategy & Market Research at FXTM wrote in a note.

JPMorgan's emerging market bond index hit its lowest level in more than a year.

The Indian rupee hit a 15-month low while the Indonesian rupiah hit its lowest level since December 2015 on Tuesday.

Dhian Karyantono, fixed income analyst at Mirae Asset Sekuritas Indonesia, said that the rupiah had weakened after weaker-than-expected first-quarter growth data.

Indonesia's economy grew at 5.06 percent in January-March, down from 5.19 percent in the previous quarter.

The divergence between developed and emerging markets was also visible in equity prices. Brazil's Bovespa hit three-month lows on Monday, when Germany's Dax hit three-month highs and Italian shares hit 8-1/2-year highs.

(Additional reporting by Gayatri Suroyo in JAKARTA; Editing by Richard Borsuk and Sam Holmes)

 

 

UPDATE 2-Oil prices fall as market awaits Trump decision on Iran - Reuters News

08-May-2018 01:58:44 PM

  • Trump decision on Iran nuclear deal expected 1800 GMT on Tues
  • Iran crude exports could be hit if U.S. pulls out of deal
  • U.S. crude back below $70 per barrel

Adds comment, graphic; updates prices

By Aaron Sheldrick

TOKYO, May 8 (Reuters) - Oil prices retreated from 3-1/2 year highs on Tuesday as investors waited on an announcement by President Donald Trump on whether the United States will reimpose sanctions on Iran.

Should Trump pull the United States out of a multi-nation agreement on Tehran's nuclear programme, Iranian crude exports could be hit, adding to tightness in the oil market, which is coming back into balance after years of glut.

U.S. West Texas Intermediate (WTI) crude futures had dropped 78 cents, or 1.1 percent, to $69.95 a barrel by 0550 GMT. They settled above $70 for the first time since November 2014 on Monday.

Brent crude futures were down 67 cents, or 0.9 percent, at $75.50, having jumped 1.7 percent to settle at $76.17 a barrel in the previous session.

Trump said on Monday that a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00 p.m. EDT (1800 GMT) on Tuesday, four days earlier than expected.

"Until we get more clarity on Trump's intentions, we are unlikely to get further upside on crude," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.

"If we assume he goes back to 2012 sanctions, we estimate a loss of 0.4 million barrels a day of Iranian supply based on recent Iranian export numbers. Anything larger than this will be bullish," he added.

Trump is likely to either announce he will not be renewing a waiver on sanctions or will restate his opposition to the nuclear agreement, Barclays Research analysts said in a report.

"Regardless, his foreign policy continues to ignite tensions in the main oil-exporting centre and is, thus, price supportive," they said.

If Trump restores core U.S. sanctions, under U.S. law he must wait at least 180 days before imposing their furthest-reaching measure, which is to target banks of nations that fail to significantly cut their purchases of Iranian oil.

Under the deal to limit Iran's nuclear pogramme, formally known as the Joint Comprehensive Plan of Action, the U.S. agreed to ease a series of sanctions on Iran and has done so under a string of "waivers" that effectively suspend them.

Trump has repeatedly threatened to withdraw from the deal, unless France, Germany and Britain - which also signed the agreement - fix what he has called its flaws.

(Reporting by Aaron Sheldrick; Editing by Richard Pullin and Joseph Radford)

 

 

 

FOREX-Dollar cements gains after scaling 2018 peak; euro struggles - Reuters News

08-May-2018 03:57:13 PM

  • Trump announcement on Iran nuclear deal key event risk

By Saikat Chatterjee

LONDON, May 8 (Reuters) - The dollar consolidated gains on Tuesday after scaling a 2018 peak in the previous session as investors focused their attention on U.S. President Donald Trump's decision about the future of an international nuclear agreement with Iran.

Trump is expected to make an announcement on the nuclear deal at 1800 GMT. A U.S. withdrawal from the deal, which eased economic sanctions in exchange for Tehran limiting its nuclear programme, would impact risk sentiment in the broader markets.

"It is an event risk and has the potential to make risk sentiment which is already cautious more unstable," said Manuel Oliveri, a currency strategist at Credit Agricole in London.

While global attention has been focused on the recent rally in the dollar -- the greenback has rallied around 4 percent in the last three weeks -- the Japanese yen has held its own against its higher yielding rivals such as the Australian dollar and the Canadian dollar.

On Tuesday, the dollar was broadly steady after rising above 92.97 on Monday as markets further unwound short bets against the greenback built up in recent months pushing the dollar up for three consecutive weeks.

Some analysts such as Commerzbank say a U.S. withdrawal from the deal with Iran could have considerable consequences for the dollar beyond an initial dollar-positive risk-off movement.

"In that case it would become increasingly more attractive to use the U.S. dollar only for direct US deals and to use another currency for other transactions, which could undermine the status of the US dollar as a dominant reserve currency longer term," they wrote in a note.

Conversely, the euro remained under pressure, stabilising around the $1.19 line as recent data have suggested the stellar growth seen in Europe last year is losing momentum.

But the Japanese yen's rise against its rivals, particularly the greenback, was checked by the widening interest rate differentials between U.S. yields and most of its rivals. For example, the gap between U.S. yields and German debt remained near three-decade highs of more than 242 basis points.

Elsewhere, the Australian dollar was down a quarter of a percent at $0.7498 following the release of soft domestic retail sales data for March.

Upbeat China trade figures for April helped limit losses for the Aussie, often used as a proxy for China-related trades.

The New Zealand dollar was little changed at $0.7017.

(Reporting by Saikat Chatterjee
Editing by Keith Weir)

 

 

 

PRECIOUS-Gold prices subdued as dollar hovers around 4-mth peak - Reuters News

08-May-2018 02:52:43 PM

  • Dollar index marks highest since Dec. 28 overnight
  • Market awaits Trump decision on Iran nuclear deal
  • Spot gold may revisit May 1 low of $1,301.51/oz -technicals

(Adds MKS trader comment, updates prices)

By Apeksha Nair

BENGALURU, May 8 (Reuters) - Gold prices remained subdued on Tuesday as the dollar held steady near its 2018-high on the relative strength of the U.S. economy.

Spot gold was down about 0.1 percent at $1,313.20 per ounce at 0635 GMT, after closing marginally lower in the previous session.

U.S. gold futures for June delivery were unchanged at $1,314.10 per ounce.

The dollar index hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the U.S. economy, leaving its major rivals such as the euro struggling.

"While seeing some support from stronger oil prices and uncertainty over the U.S. position on Iran, gold continues to trade in-line with dollar flows, which are restricting any sustained top-side moves," MKS PAMP Group trader Sam Laughlin said in a note.

A stronger dollar makes gold and other greenback-denominated commodities more expensive for holders of other currencies.

Oil prices retreated from 3-1/2-year highs on Tuesday as investors waited for an announcement by U.S. President Donald Trump on whether the United States will reimpose sanctions on Iran.

"I think the Iran deal is probably something that could turn things around. Oil might spike and gold could go with it," said a Hong Kong-based trader.

As benchmark oil prices touched $70 a barrel, U.S. Federal Reserve officials said on Monday that rising inflation and wage pressures are not enough yet to prompt a change in the central bank's rate outlook.

The market is awaiting Trump's decision on Iran and the U.S. Consumer Price Index (CPI) data for a move in gold prices, the trader said, adding that the Producer Price Index (PPI) numbers coming out this week might be something to look at to see "if there's more hawkishness going down to the end of the year".

Spot gold may revisit its May 1 low of $1,301.51 per ounce as it twice failed to break resistance at $1,317, Reuters technical analyst Wang Tao said.

Meanwhile, silver gained 0.2 percent to $16.48 an ounce, while platinum rose 0.2 percent to $909.65 an ounce, having hit its highest since April 25 in the last session.

Palladium slipped 0.3 percent to $969 an ounce, after hitting its highest since April 27 on Monday.

 

(Reporting by Apeksha Nair in Bengaluru; Editing by Subhranshu Sahu and Joseph Radford)

 

 

TECHNICALS-CBOT soybeans may fall more to $10.04-3/4 - Reuters News

08-May-2018 02:10:31 PM

SINGAPORE, May 8 (Reuters) - The CBOT soybeans July contract may fall more to $10.04-3/4 per bushel, as it has broken a support at $10.18-3/4.

The support was provided by 61.8 percent Fibonacci projection level of a downward wave C from $10.78. The next support will be at $10.04-3/4.

The wave C consists of three small waves. A projection analysis on the target of the third wave, labelled c, reveals an immediate support at $10.09-3/4, the 114.6 percent level, which temporarily held the fall and triggered a moderate bounce.

The bounce may end in the narrow resistance zone of $10.17-1/4 to $10.18-3/4.

 

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **

 

(Reporting by Wang Tao;; Editing by Vyas Mohan)

 

 

 

TECHNICALS-CBOT corn may fall more to $3.96 - Reuters News

08-May-2018 02:29:41 PM

SINGAPORE, May 8 (Reuters) - CBOT corn may fall more to $3.96 per bushel, as it has cleared a support at $4.01.

The support is identified as the 50 percent projection level of an upward wave C from $3.81. The next support will be at $3.96, a break below which could cause a further loss to $3.90.

The current correction was regarded as a pullback towards the wedge. However, the pullback looks too deep. It makes the pattern invalid.

A target at $4.16 based on the wedge has been aborted. It will be resumed, should corn stand firm above $4.01.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **

 

(Reporting by Wang Tao; Editing by Sherry Jacob-Phillips)

 

 

 

TECHNICALS-CBOT wheat may start bounce around $5.06-1/4 - Reuters News

08-May-2018 03:10:53 PM

SINGAPORE, May 8 (Reuters) - CBOT July wheat may seek a support at $5.06-1/4 per bushel and then bounce towards a resistance at $5.17-1/2, as suggested by a projection analysis.

The support and the resistance are identified respectively as the 50 percent and the 61.8 percent projection levels of the wave C from $4.59.

There has not been any bounce to disrupt the drop from the May 3 high of $5.38-1/2. Such a bounce may occur around the support at $5.06-1/4.

A break below $5.06-1/4 could cause a loss to $4.95.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **

 

(Reporting by Wang Tao)