Commodity Morning View For 04 July 2014
Bullions:- Gold slipped on Thursday after U.S. nonfarm payrolls rose more than expected in June, fueling expectations U.S. interest rates could rise earlier than expected. And also record highs on Wall Street dented bullion’s safe-haven appeal.U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, compelling evidence the economy was growing briskly heading into the second half of the year. Nonfarm payrolls increased by 288,000 jobs and the unemployment rate declined to 6.1 percent, the Labor Department said on Thursday.
Base Metals:-London copper marked its highest in over four months and LME zinc and Nickel touched a near three-year peak on Thursday, with fund buying lifting the sector as the demand outlook brightens.Nickel advanced to the highest since May as the U.S. unemployment rate fell to the lowest in almost six years, signaling that stronger economies will boost demand amid supply curbs.Employers added 288,000 jobs in June, taking the unemployment rate to 6.1 percent, the lowest since September 2008, figures from the Labor Department showed today. The median forecast a Bloomberg survey of economists called for a 215,000 increase in payrolls. Nickel, used to make stainless steel, rallied 43 percent this year after Indonesia, the largest producer from mines, banned shipments of unprocessed ores.In China, the world’s largest user of industrial metals, manufacturing expanded in June at the fastest pace this year, a government report showed on July 1.
Oil and Energy:-U.S. crude futures are set to post their biggest weekly loss in a month on receding worries about supply from Libya and Iran, although expectations of an improvement in the outlook for demand in the world’s top oil consumer checked losses.Brent crude rose 3 cents to $111.03, but is set to lose nearly 2 percent this week, the most since early January.U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, decisive evidence the economy was growing briskly heading into the second half of the year.Iraq’s autonomous Kurdish region has hit back at Baghdad over independent oil exports, a letter from the Kurdistan Regional Government showed, threatening to counter sue the central government for trying to block sales.