Asia Trading Update, FX, Gold, Oil, Equities

By Roger Baettig | May 07 2012 3:39 AM

The MSCI Asia Pacific Index (MXAP) sank 2.5 percent as of 3:01 p.m. in Tokyo. Euro Stoxx 50 Index futures retreated 2.4 percent and Standard & Poor's 500 Index futures fell 1.1 percent. The euro lost 0.8 percent to $1.2986, while the yen rose against all of its major peers. Ten-year Treasury yields declined five basis points to 1.83 percent, while bond risk in Asia increased. The S&P GSCI Index of commodities dropped to the lowest level in four months and oil slumped as much as 3.2 percent in New York.

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The Shanghai Composite Index (SHCOMP) slipped 7.44 points, or 0.3 percent, to 2,444.58 as of 1:10 p.m. local time. Thirty-day volatility in the Shanghai Composite was at 16.5 today, the lowest since March 27. The CSI 300 Index (SHSZ300) fell 0.2 percent to 2,709.68. The Bloomberg China-US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, retreated 1.5 percent in New York on May 4.

An early test of the new Franco-German relationship will be whether France's next president, Francois Hollande, backs Wolfgang Schäuble to succeed Jean-Claude Juncker as head of the eurogroup of eurozone finance ministers.

French and German officials say however that a compromise on the fiscal discipline treaty agreed in March, despite Hollande's threats to reopen negotiations. But two-round parliamentary elections in June mean Hollande will be reluctant to concede too much.

According to www.livetradingnews.com and HeffCap Asia's leaders in economic research, the risk of the European Union breaking apart has now increased.

Gold prices are also lower, pressured by a stronger greenback after elections in France and Greece cast doubts on whether the euro zone will be able to battle the debt crisis.

Spot gold fell 0.2 per cent to $US1638.45 an ounce, off the low of $US1626.50 hit on Friday.

Oil prices are extending losses in Asian trade.

New York's main contract, West Texas Intermediate crude for delivery in June stayed below the psychological $100 threshold, falling $US1.92 to $US96.57 a barrel in morning trade.

Brent North Sea crude for June shed $US1.48 to $US111.70.

Crude Oil (Jun 12) intraday: the downside prevails.

Pivot: 98.90 Our Preference: SHORT positions below 98.9 with 94.7 & 93.5 in sight. Alternative scenario: The upside breakout of 98.9 will open the way to 100 & 101.1. Comment: the upward potential is likely to be limited by the resistance at 98.9.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced width=1

GOLD (Spot) intraday: the bias remains bullish.Pivot: 1634.00 Our Preference: LONG positions above 1634 with 1648.5 & 1654.5 as next targets. Alternative scenario: The downside breakout of 1634 will open the way to 1626.5 & 1620. Comment: the RSI is mixed with a bullish bias.