Oil prices up on lower U.S. crude stocks, but growing output caps gains

Gold Prices Gain In Asia Despite Fed Hike, Inflation Picture Uncertain.

Gold prices gained in Asia on a perceived dovish tilt to a Fed rate hike overnight and as economists grapple with inflation outlook with the US reaching nearly full employment by conventional measures. The Federal Reserve approved its third rate hike of 2017, and forecasts further rate hikes despite growing concerns over the slow pace of inflation. Fed officials also expressed optimism in the economy, hiking their projection for economic growth in 2017 to 2.5%, while growth in 2018 was expected to rise to 2.5%, a 0.4% increase from the Fed’s September projections. The report raised investor expectations for ongoing bullish economic growth, lifting sentiment on riskier assets like equities. Also supporting an uptick were comments from Trump, who said he hopes to sign the tax bill “in a very short period of time”, and stressed that it was “very important for the country” that Congress vote on it next week.

Copper rose as prices extended a correction from last week’s sharp fall.

Copper on MCX settled up 0.63% at 437.25 as prices extended a correction from last week’s sharp fall, but moves were muted ahead of an expected interest rate increase from Federal Reserve. China’s central bank nudged money market interest rates upward on Thursday just hours after the Federal Reserve raised the U.S. benchmark, as Beijing seeks to prevent destabilizing capital outflows without hurting economic growth. The People’s Bank of China called it a “normal market reaction” to the Fed that would keep interest rate expectations reasonable and help with the deleveraging campaign.

Nickel prices dropped as moves were muted ahead of an expected interest rate increase from the U.S. Federal Spices Reserve.

Nickel on MCX settled down -0.49% at 713.1 as moves were muted ahead of an expected interest rate increase from the U.S. Federal Reserve. One low-grade NPI plant in Shandong Province suspended its NPI production last weekend and switched to straight carbon steel production. Philippines’s expected nickel ore export will reach 1.52 million wet tons in November, dropping dramatically compared with October.

Oil prices up on lower U.S. crude stocks, but growing output caps gains.

Oil markets rose on Thursday, lifted by a fourth straight weekly fall in U.S. crude inventories, though climbing output capped prices well below the 2015 highs reached earlier this week.Despite the rise, Brent was well below the $65.83 a barrel June, 2015 high reached earlier this week. It hit that level after the Forties pipeline in the North Sea, which carries significant amounts of crude used to underpin Brent crude futures, was shut down due to cracks. The International Energy Agency said it saw no immediate need to act, for instance with the release of strategic stockpiles, as the market remains well supplied.Another cap on prices has been soaring U.S. production, which has risen by 16 percent since mid-2016 to 9.78 million barrels per day, the highest since the early 1970s and close to levels from top producers Russia and Saudi Arabia.

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Visit Here- http://www.capitalstars.com/