* Greek FinMin visits Germany to push his government’s case.
* UK Services PMI surged to 57.2 levels in January.
* LME Copper stocks surged by 0.7 percent on Tuesday.
European markets are trading negative today as Greek Finance Minister Yanis Varoufakis visits Germany to push his government’s case for changes to the nation’s bailout terms. Asian markets ended on a mixed note and the US stock futures are trading in the red.
Spanish Services PMI jumped to 56.7-mark in January from 54.3 levels in December. Italian Services PMI rose to 51.2 levels in January from 49.4-mark in December. UK Services PMI surged to 57.2 levels in January from 55.8 in December.
In the wake of falling more than 1 percent in the past session, gold edged higher today, yet picks up were topped as Greece’s arrangement to end a standoff with leasers’ honed craving for hazardous resources. Greece’s new government dropped requires a compose off of its outside obligation and proposed consummation a standoff with its official leasers by swapping the obligation for development connected bonds. On the MCX, gold costs are exchanging higher by 0.41 percent at Rs.27400/10 gms.
Spot silver prices are trading higher by around 0.3 percent at $17.33/oz. Strength in gold prices coupled with increasing speculative interest is acting as a positive factor for prices. On the MCX, silver prices are trading higher by 0.45 percent at Rs.38264/kg.
LME Copper prices are trading lower by 0.8 percent as investors weighed signs of slower growth in China, the world’s largest user after a gauge of China’s services industry slipped to a six-month low in January. Also, jump of 0.7 percent in LME stocks along with strength in the DX acted as negative factors. MCX copper prices are trading lower by around 0.6 percent at Rs.350.95/kg
Oil prices are trading lower today with WTI and Brent falling by around 3.36 and 2.83 percent respectively. Profit booking at higher levels coupled with uncertainty in Greece is acting as a negative factor. Although, Greece’s proposal to its Euro partners to swap its debt by linking it to growth linked bonds is a move in the right direction. Acceptance by the EU is something that will be positive for oil markets. On the MCX, oil prices are trading lower by 1.21 percent at Rs.3187/bbl.
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.
Oil prices will trade lower today as international markets are trading lower. Profit booking after a recent rally will exert downside pressure on prices
We expect Copper prices to trade sideways as slowdown in China can lead to aggressive monetary and fiscal stimulus to boost the economy. While on the other hand, uncertainty over Greece along with estimates of mixed economic data from the US will exert downside pressure.