Thursday, September 26, 2013

More action in waiting

The WTI Crude Oil markets fell during the early session on Thursday and currently trading at US$102.75 a barrel at 20.15 IST and the market continued to test the lows of the consolidation area.

Tokyo Commodity Exchange plans to attract more trading from investors in China and India to boost volume, which has jumped 22% in the first eight months of the year. The decline of rubber prices on TOCOM, which influenced the direction of global rubber prices, was weighed down by negative sentiment resulting from weaker US equities and lower crude oil prices. Uncertainty about when the U.S Federal Reserve will start tapering stimulus has made Japanese investors cautious and this may also slow trading. Market participants stayed on the sidelines, waiting for the final reading of the US second-quarter GDP data to be released.

Reserve Bank of India chief, Raghuram Rajan surprised the markets with India's first policy rate increase in nearly two years in a bid to ward off rising inflation. Expectations of rate hikes have gone up now as monetary policy has given a clear and transparent signal that an upward bias on long-term interest rates will continue and will hike rates again at the central bank's next policy review on 29th October.

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