✍ MCX - WEEKLY NEWS LETTERS
✍ INTERNATIONAL NEWS
✍ Fed rate hike doubts
Most emerging Asian currencies rose on Friday to see weekly gains on growing expectations the US Federal Reserve will delay interest rate hikes after soft economic data.Malaysia's ringgit hovered near a two-week high as the economy grew at a faster-than-expected pace in the first quarter and its current account surplus almost doubled. The US dollar stayed around a four-month low against a basket of major currencies as softer-than-expected US producer prices deepened concerns over slowing growth in the world's top economy.

✍ China cuts interest rates
China's central bank cut its benchmark lending rates by 25 basis points to 5.1 percent on Sunday, the third reduction since November, as it seeks to lower borrowing costs and support the slowing economy. The People's Bank of China (PBOC) also reduced one-year benchmark deposit rates by 25 basis points, it said in a statement on its website, adding that the reductions would be effective on May 11. China launched a scheme to insure bank deposits from May 1, ushering in a reform seen as vital for freeing up a highly-protected banking sector.

✍ China factory output
China's factory output rose 5.9 percent in April compared with the same period last year, slightly below forecasts and reinforcing expectations that the government will have to step up its efforts to boost the cooling economy. A weak reading had been expected after the central bank cut interest rates early this week for the third time in six months to lower companies' borrowing costs and boost activity as the economy heads for its worst year in a quarter of a century.Analysts polled by Reuters had forecast a 6.0 percent rise, up from 5.6 percent in March, which was the weakest reading since the global financial crisis. Fixed-asset investment, a crucial driver of the world's second-largest economy, rose 12 percent in January-April from the same period a year ago, the National Bureau of Statistics showed on Wednesday.

✍ BULLION
✍ Gold
On the Comex division of the New York Mercantile Exchange, gold future for June delivery inched up $1.00 cents, or 0.08%, to trade at $1,189.90 a troy ounce during U.S. morning hours. Futures held in a tight range between $1,183.20 and $1,190.90.
On Friday, gold rose $6.70, or 0.57%, to close at $1,188.90. Prices were likely to find support at $1,168.40, the low from May 1, and resistance at $1,199.30, the high from May 5.Also on the Comex, silver future for July delivery tacked on 5.2 cents, or 0.32%, to trade at $16.51 a troy ounce. Silver jumped 16.8 cents, or 1.03%, to end at $16.46.
Greece and the euro zone were to hold a fresh round of talks later Monday as Athens scrambles to reach an agreement on a package of economic reforms in order to access fresh bailout funds.Ahead of the talks, Greece’s government indicated that it was still hopeful that progress would be made, but euro zone officials have indicated that too many issues still remain unresolved.
The Labor Department reported Friday that the U.S. economy added 223,000 new jobs in April, just below expectations for jobs growth of 224,000. March’s figure was revised down to just 85,000 from a previously reported gain of 126,000.The unemployment rate fell from 5.5% to a near seven-year low of 5.4% last month, broadly in line with forecasts.The mixed data underlined speculation that the Federal Reserve may hold off raising interest rates in the immediate future. However, investors conceded that higher rates still remain on the horizon.
In the week ahead, investors will be focusing on Wednesday's U.S. retail sales report for April, for fresh indications on the strength of the economy and the timing of a U.S. rate increase.


✍ BASE METAL
✍ Copper
Copper prices eased on Wednesday ahead of a raft of data from China expected to set the tone for future monetary policies with the central bank already cutting rates three times since November last year. At the MCX, copper futures for June 2015 contract were trading at Rs.417.90 per 1 kg, down by 0.35 per cent, after opening at Rs. 418.70 against the previous closing price of Rs. 419.35. However, losses were curbed due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by 675 metric tonnes to 337850 metric tonnes as on May 13, 2015.
✍ Zinc
Zinc futures declined 0.63 per cent to Rs 149.25 per kg today as participant’s trimmed positions on weak cues from the global markets amid subdued demand in domestic spot markets.Zinc futures for May 2015 contract, at MCX, were trading at Rs 149.25 per kg, down by 0.63 per cent after opening at Rs. 149.85 against the previous closing price of Rs. 150.20, However, losses were curbed due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 3875 metric tonnes to 446025 metric tonnes as on May 14, 2015. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

✍ ENERGY
✍ Natural Gas
Natural Gas futures extended an advance in the domestic market on Friday as investors and speculators weighed a below than expected US stockpile-build last week, signaling a pickup in demand for the fuel which is used to fire up power plants as cooling demand rises during peak summer months.US gas stockpiles climbed by 111 billion cubic feet to 1.897 trillion cubic feet in the week ended May 8, 2015, compared to an estimated rise of 116 billion cubic feet by analysts.Further, forecasts for warmer than average weather in the US in the coming days also bolstered the demand outlook for the weather-sensitive fuel.At the MCX, Natural Gas futures for May 2015 contract is trading at Rs 191.10 per 1 kg, up by 0.26 per cent after opening at Rs 191.20, against the previous closing price of Rs 190.60.
✍ Crude Oil
Crude oil futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as a second straight drop in US crude oil supplies eased fears over a US supply glut. US crude oil stockpiles fell by 2.19 million barrels to 484.8 million barrels in the week ended May 8, 2015, the EIA reported. Meanwhile, gasoline supplies fell 1.1 million barrels, while distillate stockpiles dropped by 2.5 million barrels.
The International Energy Agency (IEA) raised its forecast for global oil consumption in 2015 by 50,000 barrels per day with world crude demand set to increase by 1.1 million barrels a day this year, or 1.2 per cent, to average 93.6 million barrels a day.
At the same time, the agency upgraded its forecast for Non OPEC output growth by 200,000 barrels per day this year amid “surprisingly strong” production in Q1 from the likes of Russia, China, Colombia, Vietnam and Malaysia. US retail sales were little changed in April, compared to expectations of a 0.2 per cent rise, signaling weakness in the world’s biggest economy, clouding the demand outlook for the fuel, curbing gains in oil futures.

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