Brexit woes continue, oil production severely impacted in Venezuela & rupee strengthens further

09th Mar – 15th Mar

1. Gold corrected further after dollar strengthened and equity markets rallied on the back of Brexit delay

Mar 15, 2019

Gold corrects from recent highs as UK voted to delay Britain's departure from the EU, currently scheduled for March 29. The dollar gained strength against the GBP following a delayed exit of Britain from the EU. UK lawmakers have voted in favour of delaying the Brexit process and have also rejected the second referendum. Prime Minister Theresa May will now ask European leaders to grant an extension to Article 50. EU is likely to agree to an extension as long as there is a prospect of a deal being reached, or a referendum or a general election which could change the political landscape.

Source: CNBC

2. Power failure in Venezuela may cost nearly 700,000 barrels per day of oil production

Mar 13, 2019

Power failure in Venezuela may cost nearly 700,000 barrels per day of oil production. Venezuela’s worst blackout on record has left most of the country without power for six days. The power failure left many homes without running water and caused chaos in hospitals, as well as disrupting places of work and schools.

Source: CNN

3. The Indian rupee strengthens against the US dollar following FII’s flow and rally into equities

Mar 15, 2019

The Indian rupee regained strength after weakness in the dollar and consistent FII flows. Foreign funds (FII's) bought shares worth Rs. 1,482.99 crore, while Domestic Institutional Investors (DII's) sold shares to the tune of Rs. 817.77 crore on 14th March. In March 2019, FII’s net bought shares worth Rs. 14,807.58 crore, while DII's were net sellers to the tune of Rs. 6,848.64 crore.

Source: Economic Times

4. US February non-farm payroll dropped to 20,000 against market expectations of 180,000

Mar 09, 2019

Job growth came to a near halt in February. It was the worst month for job creation since September 2017. Non-farm payrolls increased marginally by 20,000 against the market expectation of 180,000. The unemployment rate fell to 3.8 percent, which had been projected to be at 3.9 percent from January’s 4 percent. Unemployment rose because of two major hurricanes in the US.

Source: Business Standard

5. China Consumer Price Index (CPI) rose by 1.5% and PPI rose by 0.1 percent in February on a year-on-year basis

Mar 09, 2019

China's Consumer Price Index (CPI) rose by 1.5 percent year-on- year in February - Source: the National Bureau of Statistics. China had set the CPI target for 2019 at 3 percent. The country's Producer Price Index (PPI) was also up by 0.1 percent on a year-on- year basis in February, according to the Bureau.

Source: Financial Express

6. Oil prices rose due to comments from Saudi oil minister Khalid al-Falih on OPEC+ production cut

Mar 10, 2019

Oil prices rose by comments from Saudi oil minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June. Saudi oil minister Khalid al-Falih said on Sunday that it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year.

Source: Business Line

7. Zinc rallied as inventories decline at LME

Mar 10, 2019

Zinc prices rose as inventories continued to decline at LME. The metal is also receiving support from the policy of China's Central Bank to increase loans and lower borrowing costs after a sharp drop in bank lending in February. Zinc has risen more than 11 percent in London so far in 2019, as zinc stocks at the London Metal Exchange (LME) registered warehouses, which fell below 60,000 tonnes. In the short term, sentiment over shrinking stocks continues to support the prices.

Source: CNBC

8. China auto sales fell 13.8% in February, marking eighth month of decline

Mar 11, 2019

China's auto sales fell nearly fourteen percent in February from the same month last year. It is the eighth consecutive month of decline. Auto sales fell to 1.48 million vehicles that followed a decline of 16 percent in January and 13 percent in December. New energy vehicle sales, in contrast, rose 53.6 percent year-on-year in February, it said. (Data published by China Association of Automobile Manufacturers)

Source: Reuters