BULLION – Bullion counter may trade on mixed path as gold was mostly unchanged in early Asian trade on Wednesday as investors awaited the outcome of a U.S. Federal Reserve meeting at which policymakers are expected to cut interest rates for the first time since the financial crisis. Investors are bracing for the Fed’s policy announcement due later in the day, for which markets have already fully priced in a quarter of a percentage point rate cut. Markets will also be watching for guidance on whether the Federal Open Market Committee’s expected move is a one-time cut or the beginning of a rate-cutting cycle. U.S. President Donald Trump reiterated his call for the Fed to make a large interest rate cut, saying he was disappointed in the U.S. central bank and that it had put him at a disadvantage by not acting sooner. Trump warned China against waiting out his presidency before finalizing a trade deal, saying if he wins re-election in November 2020, the outcome could be no agreement or a harsher one.
ENERGY– Crude oil may trade on positive path as oil prices rose for a fifth day on Wednesday, buoyed by a bigger than expected drop in U.S. inventories and as investors awaited a widely expected cut in interest rates by the Federal Reserve, the first in more than 10 years. Still U.S. inventories have been falling in recent weeks suggesting demand concerns are overstated. Stocks fell again last week, along with gasoline and distillate inventories, data from industry group the American Petroleum Institute (API) showed on Tuesday. Distillate fuels stockpiles, which include diesel and heating oil, fell by 890,000 barrels, compared with expectations for a 1 million-barrel gain, the API data showed. Total crude stockpiles, however, would still be about 3% higher than the average for the five years between 2014-2018 average for this time of year.
BASE METAL – Base metals may trade on sideways path. U.S. President Donald Trump on Tuesday warned China against waiting out his first term to finalise any trade deal, saying if he wins re-election in the November 2020 U.S. presidential contest, the outcome will be worse for China. China’s factory activity shrank for the third straight month in July, an official survey showed on Wednesday, underlining the need for more stimulus to support an economy hit hard by the bruising trade war with the United States. Copper prices in London were steady on Wednesday ahead of a rate decision by the U.S. Federal Reserve, but were on track to fall this month amid slowing growth from top consumer China. About 18,000 tonnes of lead are expected to be off the market as Korea Zinc is carrying out maintenance at a lead refinery until late August, but the company had secured inventories ahead of the maintenance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.