MCX MORNING UPDATE
BULLION – Bullion counter may remain on firm note as gold prices rose more than 1% on Wednesday as a report showing weaker-than expected hiring by U.S. The ADP National Employment report on Wednesday showed U.S. private employers hired fewer workers than expected in September, pointing to a labor market slowdown. A day earlier, the Institute for Supply Management (ISM) reported that U.S. manufacturing activity slumped to a more than 10-year low in September. World equity benchmarks hit their lowest levels in a month as signs of a U.S. slowdown and weak earnings in Europe fanned fears the U.S.- China trade war could push the global economy into a recession. The dollar dropped against the euro and yen but the dollar index.
ENERGY – Crude oil may remain on weaker side. Oil futures extended losses on Thursday as weak economic data weighed on the outlook for fuel demand which was made worse by a larger than expected rise in U.S. crude inventories. World equity benchmarks hit their lowest levels in a month on Wednesday as signs of a slowdown in U.S. economic growth and weak earnings in Europe fanned fears that the U.S.-China trade war could push the global economy into a recession. U.S. crude inventories rose 3.1 million barrels last week, the Energy Information Administration said on Wednesday, far exceeding analyst expectations for an increase of 1.6 million barrels. Brent futures are now below levels seen before the Sept.
BASE METAL – Base metals may trade with sideways bias. The Shanghai Futures Exchange was closed on Thursday as part of its Golden Week Holidays and will reopen on Tuesday Oct. The United States on Wednesday said it would slap 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, and cheese from across the continent as punishment for illegal EU aircraft subsidies. New York Federal Reserve Bank President John Williams said on Wednesday that while the U.S.