* EC upgrades Euro Zone GDP to 1.3% in 2015, up from 1.1%.
* German Factory Orders jumped by 4.2 percent in December.
* LME Copper stocks jumped by 12.9 percent on Wednesday.
* European markets are trading negative today after the European Central Bank said it would not accept Greek bonds as collateral. Asian markets ended on a mixed note and the US stock futures are trading in the green.
* The EC predicts that eurozone GDP will rise by 1.3% in 2015, up from 1.1% three months ago. It believes the lower oil price, and the ECB’s new quantitative easing programme, will boost activity in the sluggish economy.
* Spot gold prices are trading lower by half a percent at $1264.41/oz. as uncertainty in Greece has lowered down that has cut investor interest in risky assets and China’s efforts to spur its slowing economy did not bode well for yellow metal. Bullion was largely trading in a narrow range ahead of Friday’s U.S. employment data that may provide more clues on when U.S. interest rates would rise this year, the first hike in nearly a decade. On the MCX, gold prices are trading higher by 0.51 percent at Rs.27541/10 gms.
Spot silver prices are trading lower by around 0.3 percent at $17.25/oz. Weakness in gold prices, strength in the dollar and weakness in the base metals pack is acting as a negative factor for prices. On the MCX, silver prices are trading lower by 0.19 percent at Rs.38300/kg.
LME Copper prices plunged by 1.9 percent from two-week highs today as traders who bought copper on talk of fresh easing measures by China took profits after it cut its bank reserve requirements. Also, whopping jump of 12.9 percent in LME stocks along with strength in the DX acted as negative factors. MCX copper prices are trading lower by around 1.9 percent at Rs.348.25/kg
Oil prices are trading higher today with WTI and Brent gaining by around 1.38and 1.75 percent respectively. Greece’s proposal to its Euro partners to swap its debt by linking it to growth is rejected by the EU. The major fundamentals remain bearish with ample supplies and bleak demand and this can exert downside pressure on oil prices. On the MCX, oil prices are trading lower by 0.88 percent at Rs.3037/bbl.
Market Outlook Report :
Gold prices are expected to trade lower today on strength in the dollar on account of optimism in the US economy although the economic indicators released in the recent week has been poor. Federal Reserve’s reiteration that the US economy is in bright shape is a negative for gold prices. Rise in interest rates in the US is a sure thing, although the timing remains a question mark. Greece’s proposal has been rejected by the EU and further developments over the nation would be crucial for trajectory of gold prices
Oil prices will trade lower today in the domestic markets on account of rupee appreciation, although international markets are trading higher by more than 1 percent. Rising inventories in the US also is a cause of concern acting as a negative factor for prices
We expect Copper prices to trade lower as rejection of Greece bonds as collateral for debt by the ECB has hurt market sentiments. Also, estimates of weak employment data from the US in the evening session will be negative for the metal. However, upgrading of Euro Zone growth for 2015 by the European Commission will restrict sharp fall.