MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS
✍ Draghi: Growth is 'too low everywhere' in Europe :
European Central Bank head Mario Draghi said that "growth is too low everywhere" in the 19-country eurozone despite a modest recovery. Draghi made the blunt remark as he opened a conference on the unemployment problem plaguing several of the European Union member countries that share the euro currency. "Recently, economic conditions have improved somewhat in Europe," he said at the ECB's conference on inflation and unemployment in Sintra, Portugal. "But growth is too low everywhere." He said that inflation was too low — a sign of economic weakness — and that "people in Europe are frustrated by the lack of growth they have witnessed in recent years."
US officials have pressed Europe to tackle its growth problem. The eurozone remains a key market for many US firms and its health is an important factor for the global economy. Greek crisis talks as Tsipras, Merkel meet The eurozone has struggled with a crisis over too much government and bank debt since Greece reported its deficit was out of control in 2009. Greece, Portugal, Ireland, and Cyprus have been bailed out by other members, and Spain got a bailout for its banks. European governments are facing lower than desired growth and high unemployment as they restrain spending to try to reduce debt.

✍ China invites investors to build $318 bn worth of projects:
China's state planning agency on Monday released a list of more than 1,000 proposed projects totalling 1.97 trillion yuan (USD 317.75 billion) that it is inviting private investors to help fund, build and operate.
The National Development and Reform Commission said the 1,043 projects, in sectors such as transport, water conservancy and public services, will be done as public-private partnerships (PPP). Beijing is striving to rein in local government debt, estimated at around USD 3 trillion, but there are signs that the clampdown is having an adverse impact on existing projects. Chinese policymakers on May 15 ordered banks to keep lending and not reduce the size of their loans to local government projects under construction, especially urban subways and affordable housing.


BULLION
✍ Gold
Gold prices inched up in Asia Friday on sentiment of continued easy monetary policy globally. On the Comex division of the New York Mercantile Exchange, gold for June delivery rose 0.13% to $1,205.70 a troy ounce.
Silver for July delivery rose 0.01% to $17.133 a troy ounce. Copper for July delivery fell 0.09% to $2.848 a pound. The Bank of Japan announces its monetary policy after its two-day board meeting around 1230 Tokyo time (0330 GMT) with expectations of standing pat.
Later in the day, BoJ Governor Haruhiko Kuroda holds a news conference at 1530 (0630 GMT) to explain the board's decision. Overnight, gold futures fell mildly on Thursday amid downbeat economic data in the U.S. , Europe and China, as metal traders digested Wednesday's release of the Federal Reserve's April meeting, which provided further indications of a delayed interest rate hike. The Fed reiterated that it will take a "data-driven" approach to its when it is reasonably confident it has seen significant improvements in the economy. The Fed blamed weak first quarter GDP growth on "largely transitory factors" such as severe winter weather and a West Coast port slowdown that dented exports.
In April, the FOMC said consumer price inflation continued to fall below its long-term targeted goal of 2%. Medium-term forecasts for inflation, which the Fed generally defines as the next two years, projected to "move closer but remained" below the FOMC's 2% goal. Economists expect the CPI to increase modestly for April on a monthly basis by 0.1%.

ENERGY
✍ Crude oil
Crude oil futures rise as concerns that U.S. shale production could rebound in the months ahead and a stronger U.S. dollar weighed. Activity was likely to remain thin on Monday, as markets in the U.K., U.S. and Germany are all shut for public holidays. On the New York Mercantile Exchange, crude oil for July delivery shed 47 cents, or 0.8%, to trade at $59.25 a barrel during European morning hours. Prices held in a range between $59.11 and $60.01.
On Friday, Nymex oil lost $1.00, or 1.65%, to end at $59.72 after data showed that the decline in U.S. drilling slowed down last week. According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. fell by only one last week to 659, marking the 24th straight week of declines.
Oil traders have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market. However, the rate of decline has slowed in recent weeks, fuelling concerns that some shale oil companies will dial up their output in the months ahead if prices stabilize near current levels.Meanwhile, the U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.25% at 96.50 early Monday, the strongest level since April 28.
The greenback strengthened after Federal Reserve Chair Janet Yellen said on Friday that interest rates will be raised later in the year. The dollar had also been boosted on Friday after stronger-than-expected U.S. inflation data supported the case for a rate hike later this year. Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery dipped 23 cents, or 0.35%, to trade at $65.14 a barrel. Brent prices declined $1.17, or 1.76%, on Friday to close at $65.37.



✍ Natural gas
Natural gas prices rebounded from a more than two-week low struck in the previous session on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.

On the New York Mercantile Exchange, Natural gas for delivery rose 3.5 cents, or 1.21%, to trade at $2.884 per million British thermal units during U.S. morning hours.Weather forecasting models called for slightly warmer than average temperatures across the U.S. over the next ten days, although not yet enough to significantly boost cooling demand. Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.Total U.S. natural gas storage stood at 1.989 trillion cubic feet as of last week, 59.0% above year-ago levels and 1.7% below the five-year average for this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have made up for most of last winter’s unusually strong demand.Elsewhere on the Nymex, Crude oil for delivery in July lost 9 cents, or 0.15%, to trade at $57.94 a barrel, while heating oil for July delivery slumped 0.68% to trade at $1.891 per gallon.

BASE METAL
✍ Copper
Copper prices held near a four-week low on Friday, as investors looked ahead to the release of key data later in the session for further indications over the timing of a U.S. rate increase and the strength of the economy.

On the Comex division of the New York Mercantile Exchange, Copper for July delivery inched up 0.5 cents, or 0.18%, to trade at $2.774 a pound during European morning hours.
Futures were likely to find support at $2.753, the low from April 28, and resistance at $2.834, the high from May 26.A day earlier, copper prices slumped to $2.758, the weakest level since April 28, before settling at $2.768, down 0.9 cents, or 0.34%, as the U.S. dollar rallied amid speculation the Federal Reserve was on track to raise interest rates in September.


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