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VRS - who has written 39856 posts on Opalesque Commodities Briefing.


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Some Popular Global ETFs Breakout

Posted on 23 March 2015

The current bull market for U.S. stocks is the fourth longest in history. Two others journeyed into a seventh year, while one other (1990s) enjoys the distinction as having traveled into an eighth year. Even if one subscribes to the idea that “bull markets never die of old age,” probability alone suggests that we are closer to the end than the beginning.

HSBC Asset Management buying bonds of commodity exporters, Russia, Brazil

Posted on 23 March 2015

HSBC Global Asset Management, an arm of HSBC Holdings, is buying bonds of commodity exporting countries because their valuations have dropped so far with the plunge of oil prices, an executive said.

Merger Process With Commodity Regulator to be Smooth: Sebi

Posted on 23 March 2015

Securities and Exchange Board of India (Sebi) on Sunday said the action plan for proposed merger of Forward Markets Commission (FMC) with itself is under works and expressed hope that the process would be “smooth”.

Canada Hub Aims to Boost Deals in China Currency

Posted on 23 March 2015

Canada’s launch of a trading hub Monday will make it easier for companies in the Western Hemisphere to do business in Chinese currency, part of a larger effort to boost trade with the world’s second-largest economy and give its money an expanded role on the world stage.

Currency hedging takes on new importance for global stock funds

Posted on 23 March 2015

As the dollar surged in the last 12 months, David Marcus, head of the Evermore Global Value fund, steadily increased his stake in Europe. He now has 60 percent of his portfolio invested in companies in the euro zone, the largest stake among any global fund tracked by Lipper.

Vladimir Putin calls for ‘Eurasia’ currency union

Posted on 23 March 2015

Has the time come for Russia to dump the rouble and create it’s vision for their own Eastern European economic and monetary block? Back in May, LeapRate reported the on formal signing of partnership of the new ‘Eurasian Union’, which includes Russia, Belarus and Kazakhstan. The partnership, which has been effective from the start of the year, will implement tariff and non-tariff regulations.

Four dangerous currency exchange myths

Posted on 23 March 2015

Being apathetic about currency exchanges rates can be very damaging for your business. Let’s look at some of the dangerous myths that people cling to, to justify keeping their head in the sand.1. What goes up must come down: Or the reverse: that a sinking currency must recover eventually. History tells us that movements in many markets tend to have cycles, but there’s no way of knowing when the tide may turn your way again.

RGGI Auction Extends US Carbon Market Winning Streak

Posted on 23 March 2015

North America’s longest-running carbon market just set a new mark for carbon pricing across the Northeast US, passing a significant revenue milestone years ahead of schedule, and continuing an impressive winning streak for American and Canadian carbon auctions.

5 Ways to Reduce the Drivers of Climate Change

Posted on 23 March 2015

Climate change is fundamentally a development issue. It threatens to exacerbate poverty and hurt economic growth. At the same time, how countries grow and the investments they make to meet the energy, food and water needs of an expanding population can fuel climate change, raising risks worldwide, or contribute to solutions.

Goldman Sachs And Morgan Stanley Commodities Trading Alarms Fed Governor

Posted on 20 March 2015

At a U.S. Senate committee hearing Thursday, Federal Reserve Board member Daniel Tarullo singled out Morgan Stanley and Goldman Sachs over continued trading in commodities markets, suggesting that the Dodd-Frank Act could be bolstered to limit the banks’ activities in these markets.

Kuwait Says OPEC Has No Choice But to Keep Oil Production Target

Posted on 20 March 2015

OPEC has no plans for an extraordinary meeting to discuss ways to shore up oil prices and doesn’t have a choice but to keep its crude production unchanged to maintain market share, Kuwait Oil Minister Ali Al-Omair said.

Preparing for a Brent Benchmark With No Brent Oil

Posted on 20 March 2015

It was once a behemoth, a massive North Sea oil field whose importance to the world crude market was summed up by its name atop the global benchmark price: Brent. Today, the Brent field, northeast of Scotland’s remote Shetland Islands, is all but tapped dry. It produces about 1,000 barrels a day in a global market of 93 million daily barrels.

The World’s Biggest Oil And Gas Companies

Posted on 20 March 2015

Big Oil is in a panic. The global price of crude has fallen further and faster than anyone could have predicted. At $43 a barrel oil is down about 70% from June 2014. Record oil supplies have outstripped demand, and now storage tanks are filling up. By June we might just run out of room to stick all this crude. If that happens $43 a barrel might look great compared with how far oil prices could fall.

India Uses Oil Price Drop To Fill Strategic Reserves

Posted on 20 March 2015

The world’s fourth biggest oil consumer, India last month built its first underground SPR in Andhra Pradesh. India is set to import 8 million barrels of Iraqi oil to fill its first strategic petroleum reserve (SPR), taking advantage of cheap prices and lending some support to a market suffering from oversupply.

Growth in non-OPEC oil output to keep crude prices in check

Posted on 20 March 2015

The unravelling of crude oil prices has been the biggest story of 2014. A combination of factors have led to crude oil prices correcting sharply. While demand-supply mismatches happen to be a big reason for the fall, increase in output from non-OPEC oil producing countries have also played a big role in price movements.

Iran on course to regain OPEC position

Posted on 20 March 2015

Industry observers say Iran is able to reclaim its position as the second largest oil producer in OPEC once US-led sanctions are lifted. Iran has said it could add a million barrels to daily oil production shortly after a deal to lift sanctions.

What Moves Gold Prices?

Posted on 20 March 2015

The price of gold is moved by a combination of supply, demand and investor behavior. That seems simple enough, but the way those factors work together is sometimes counterintuitive. Many investors, for example, think of gold as an inflation hedge. That has some common sense plausibility — paper money loses value as more is printed. But the supply of gold is relatively constant. As it happens mining doesn’t add much year to year.

Commodities explained: The new gold fix

Posted on 20 March 2015

London is the centre of the gold world, accounting for about three quarters of the world’s bullion trading. On Friday the twice-daily process used for almost a century to “fix” the price of precious metal goes digital.

The way gold prices are set is changing forever

Posted on 20 March 2015

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion.

China to allow more firms to trade gold

Posted on 20 March 2015

China’s central bank on Thursday detailed plans on granting more licences for gold imports and exports, while maintaining that it could impose trade restrictions when necessary. A further opening up of the world’s second biggest bullion market would underpin demand for the metal while also boosting global prices that have dropped 9 percent in two months.

Silver to trend towards $14/oz by year-end – SocGen forecast

Posted on 20 March 2015

The silver price will struggle going forward as the Federal Reserve starts hiking interest rates from June onwards, Société Générale said in a report. The French Bank expects that the Fed will raise interest rates by 25 basis points in June 2015, with this more likely followed by another hike of a similar magnitude later this year.

What About ‘Currency Hedging’ in Gold ETFs?

Posted on 20 March 2015

Markets are feeling a bit of a hangover one day after a rowdy, post-Fed rally. Stocks, bonds and gold are all lower. The SPDR Gold Shares (GLD) is down 0.2% on Thursday. It climbed 2% on Wednesday after Federal Reserve policymakers’ lukewarm assessment of U.S. economic growth prompted market watchers to rethink how soon the central bank might raise interest rates.

Short Oil ETFs in Focus as Crude Prices Keep Falling

Posted on 20 March 2015

The oil investing phobia eased somewhat as crude saw the strongest two-week gain in 17 years early February, on sharp spending cuts by big U.S. oil drillers. But this respite was short-lived as oil prices started to dip again. Many hoped the commodity would be able to hold above $50. But to their disappointment, WTI crude fell below $44 a barrel on March 16.

Sen. Grassley: Time to stand up to China on currency

Posted on 20 March 2015

Both Democrats and Republicans have exercised too much caution in dealing with China on the issue of currency manipulation, Sen. Chuck Grassley, R-Iowa, said on Thursday. “We’ve never wanted to charge them with manipulation and I think our caution has been to the disadvantage of the American consumer, to the disadvantage of our producers in this country,” he said.

Fed Inspired Currency Volatility Seen Weighing on Liquidity

Posted on 20 March 2015

Foreign-exchange traders better get used to wider swings in exchange rates and less liquidity as the Federal Reserve keeps markets guessing while moving closer to raising interest rates.

Latest carbon credit scam shut down - but will it make a difference?

Posted on 20 March 2015

Eco Business Management, a firm Money Observer has previously warned against doing business with, has been ordered to close by the High Court. The firm was ordered into liquidation after an investigation found it mis-sold wildly overpriced carbon credits to investors, using high-pressure sales tactics and misleading statements.

Corporate carbon offset buyers dispel greenwashing myths

Posted on 20 March 2015

A new report dispels the myth that companies purchase carbon offsets to “buy their way out” of taking responsibility for their contributions to climate change. Rather, companies that include offset purchases as part of their carbon management strategies are more environmentally proactive than their non-offsetting counterparts, the report found.

Why Commodities Are Toast

Posted on 19 March 2015

The 1970s were much like the previous decade. While, as Mark Twain said, the past doesn’t repeat itself, but it does rhyme, the 1970s and the 2000s had many of the same elements: war in the middle east, commodities boom, market crashes. It’s likely a generational effect.

Everything you want to know about falling oil prices

Posted on 19 March 2015

Why is the oil price falling? Mostly because of increased supply from America—up by 4m barrels a day since 2009. Although most crude exports are still banned, American imports have plummeted, contributing to a glut on world markets. Other producers have decided not to try to curb their production and keep the price up.

Oil prices rebound sharply after Fed move

Posted on 19 March 2015

Oil prices staged a sharp rebound after the US Federal Reserve scrapped its low-rates guidance on Wednesday, weakening the dollar. US crude had marked a fresh six-year low earlier on Wednesday before the Fed ended a monetary policy committee meeting by dropping a pledge to be “patient” before raising rates, but cutting growth and inflation forecasts.

Crude Oil Prices Drop Again, but They’re Unlikely to Hit $20

Posted on 19 March 2015

The most pessimistic prediction has come from Citibank, which has said crude oil could fall as low as $20 a barrel this year, but prospects for $20 oil are as unlikely as the predictions for $60 oil were only a few weeks ago when it looked like an imminent and sustained recovery was just over the horizon. Fundamentally, there is little to stop oil’s slide right now. An interim January low of $43 was broken on Wednesday, and the chart analysts are finding it difficult to predict a bottom.

Iran calls for non-OPEC producers to cut oil output: IRNA

Posted on 19 March 2015

Iran Oil Minister Bijan Zanganeh said non-OPEC producers should cut oil output to prop up prices, adding that he did not see “good cooperation” among producers, the OPEC member country’s official IRNA news agency reported on Wednesday.

Will The Oil Markets (And Shale Producers) Capitulate Before Demand Recovers?

Posted on 19 March 2015

Is the U.S. shale industry at a tipping point? Oil prices fell to a six-week low on Friday after the International Energy Agency warned that the U.S. may soon run out of room to store all the oil being pumped out of shale plays across the country.

Oil price slump is choking this OPEC economy

Posted on 19 March 2015

Plunging oil prices are taking a heavy toll on one of Africa’s top producers. Nigeria’s currency is trading at a record low against the U.S. dollar, the stock market has slumped 15% this year — making it the worst performer in Africa — and financial reserves are being depleted.

Gold price to double by 2030 thanks to Asia

Posted on 19 March 2015

Asia’s financial system liberalization and its population’s growing wealth are two key factors expected to boost demand for gold and push the price of the key commodity over US$2,400 an ounce by 2030, a report published Wednesday claims. According to the Australia and New Zealand Banking Group (ANZ) predictions, as incomes rise across Asia, particularly in China and India, so will the appetite for gold rings and necklaces.

The Way Gold Prices Are Set is Changing Forever

Posted on 19 March 2015

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion. Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year.

Is gold finally ready to rebound?

Posted on 19 March 2015

Analyst Jim Bianco argues that gold may have already reached its bottom. There are few more polarizing topics in the world of investing than gold. The shiny metal, which for centuries was the basis of the global monetary system, is beloved particularly by investors whose political beliefs tilt libertarian.

Fund Selector: Should you dig gold?

Posted on 19 March 2015

In the past, there have been periods when the correlation between gold bullion and the gold equity market has been high. Yet, at the turn of the decade, correlation of sorts fell away quite remarkably.

Copper drops on China weakness

Posted on 19 March 2015

Copper has taken its biggest fall since late January, weighed down by economic weakness in top consumer China and expectations the Federal Reserve will prepare the ground for an increase in US interest rates. Other metals slid to fresh lows as investors stepped up selling during the day, sending tin and lead to their weakest levels in 57 months and nickel to a 14-month nadir.

The Fastest-Growing ETFs

Posted on 19 March 2015

The business of exchange-traded funds is dominated by three big players: BlackRock’s iShares, Vanguard Group, and State Street, which collectively control 82 percent of the roughly $2 trillion invested in ETFs. Other firms are fighting to gain market share, and several have made their way into Bloomberg Markets’ annual ranking of the fastest-growing funds over the three years ended on Dec. 31.

Investors Pull $6.1 Billion From Bond ETFs Amid Fed Concerns

Posted on 19 March 2015

Investors dumped exchange-traded funds that invest in bonds ahead of today’s Federal Reserve statement on concern officials would get closer to raising interest rates. Investors pulled $6.1 billion this month from bond ETFs through March 16, or 1.9 percent of total fund assets, according to TrimTabs Investment Research data.

Europe’s quantitative easing pushes hedge funds up 2.25% in February

Posted on 19 March 2015

The European Central Bank’s extension of aid to Greece and its new EUR 1.1tln stimulus package rallied European equity markets, that helped pushed hedge funds to gain 2.2% last month, said data provider BarclayHedge. It added that the quantitative easing also calmed down deflation fears on rising prices for oil and other commodities.

In boon for bitcoin, UK to regulate digital currency exchanges

Posted on 19 March 2015

Britain took a significant step towards becoming a global bitcoin hub on Wednesday as the government announced it would regulate digital currencies for the first time by applying anti-money laundering rules to exchanges.

Sweden’s Krona Tumbles After Riksbank’s ‘Currency War’ Rate Cut

Posted on 19 March 2015

Sweden’s krona weakened the most in 16 months against the euro after the nation’s central bank cut interest rates and expanded its government-bond purchase plan outside of its schedule for policy decisions.

EU carbon market emissions fell 3.7 percent in 2014: analysts

Posted on 19 March 2015

Emissions capped by Europe’s carbon market fell 3.7 percent in 2014, driven by higher output from renewable power producers and lower electricity consumption, analysts at Thomson Reuters Point Carbon said on Wednesday.

Finland Cool on Early Start of European Carbon Market Reserve

Posted on 19 March 2015

Finland has reservations over plans to advance the start of a draft European Union carbon-market fix by four years from 2021 as it seeks to avoid raising costs for industrial companies.

Citi Sees Slower Commodities Demand Growth as China Recedes

Posted on 18 March 2015

Global commodity markets will see slower and less synchronized demand growth from across the world as China’s dominance fades, according to Citigroup Inc. Global demand expansion, which centered on the rise of China in the 2000s, will slow in the next decade and be driven increasingly by India, Southeast Asia, the Middle East, Latin America and Africa, the New York-based bank said in a report e-mailed Tuesday.

China is irreplaceable for the commodities market

Posted on 18 March 2015

The commodities supercycle may be over but there’s no replacement for China as the world’s factory, according to Citi. From now on commodities demand will come from a diversified group of regions including India, the Middle East, Latin America, Africa and countries belonging to ASEAN in Southeast Asia, writes Henry Sanderson, commodities correspondent.

Iran’s Nuclear Deal Could Open Oil Flood

Posted on 18 March 2015

Iran, the U.S. and its allies are pushing ahead with talks over a nuclear deal that would change many things—perhaps none faster than the price of oil. Iranian exports in recent years have been essentially capped by Western sanctions aimed at pressuring Tehran over its nuclear ambitions.

Iran oil supply concerns are ‘unduly bearish’: Analyst

Posted on 18 March 2015

Concerns that a nuclear deal with Iran could end sanctions on that country and flood an oversupplied market with oil are “unduly bearish,” the managing director at Clearview Energy Partners said. “The deal they have probably won’t bring back crude exports to their full level right away,” Kevin Book said. “It’s probably going to be a series of gates and steps, a process where Iran has to do some things, the West will give some sanctions relief.”

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