Uninvestible

When the country slaps exorbitant fines without any explanation, raids your premises under unclear counterespionage laws, approves deals at snail’s place, and blocks her own citizen’s IPO, she is called “uninvestible”. China is trying to lure American businesses and prove the tag is wrongly labelled to it. ?

Meanwhile in the US, yesterday data showed that jobs opening and labour turnover survey (JOLTS) declined to a 30 months low (Jul - 8.82 million Vs expected 9.46 million Vs? Jun 9.16 million). The consumer sentiment fell by the most in two years in August. Next due are the PCE price index, the ISM Manufacturing PMI and many more. The dollar index held below 104 after losing half a percent yesterday. Dollar’s strength was weighed down by softer-than-expected US economic data. The bets that the Federal Reserve will end its interest rate hikes bolstered.?

Gold held below $1,940 an ounce having gained full one percent yesterday. Broadly positive momentum was seen across the base metals today due to dollar effect. Aluminium retested the support level of $2,170 a tonne. 3M copper fluctuated around $8,420 a tonne. Zinc traced higher to $2,440 before touching $2,460 a tonne.

LME warehouses in Gwangyang currently hold 256,650 metric tons, almost half of units in the LME warehouses, of Ali. The movement of ali at Gwangyang started from modest 24kt in Jan but inflows of Rusal took it to a quarter million. This surpassed inventory at Port Klang. Let us see this in light of swelling 3M contango $2 in May to $50 in Aug.? What does it mean? Weak demand has caused spreads?to balloon?out. This stimulated interest in the stocks financing trade. Also, the competition to grab LME aluminium during weak demand is intensifying. We saw the war-ground shifting from Detroit to Vlissingen to Port Klang, and now to Gwangyang,