August 8, 2012 News Highlights: The U.S. API Weekly Crude Stock fell to a seasonally adjusted annual rate of -5.35M, from -11.61M in the preceding month in turn indicating that demand for the fuel in US, world’s largest consumer of crude oil is strong. Crude oil output from Organization of Petroleum Exporting Countries (OPEC) fell 270,000 barrels per day (bpd) in July to 31.45 million bpd from 31.72 mbpd in June, raising supply concerns in the near future. The Federal Ministry of Economy and Technology said that German manufacturing orders declined more than expected by 1.7 percent month-on-month in June against expectations of a drop of 0.8 percent which in turn curbed gains in copper by dampening demand outlook for industrial metal. The European Central Bank is expected to start unlimited buying of stricken member states' bonds to drive down their crippling borrowing costs and shore up its faltering economy which in turn improved demand prospects for copper and c...
While the Indian stockmarkets were not generous to investors (declined week-on-week), the rain gods gave a handful to Mumbai and as usual, the city choked during the last week! This did have an impact on the daily volumes traded, which was low in the first three days, only to gain momentum in the later half. Despite a weak start, there was selective buying interest in some sectors. But sentiment was dampened following the Prime Minister's decision to keep disinvestments of public sector units on hold (read Neyveli Lignite Corporation). This time, it was not only the 'Left' that was 'as usual' against the move, but also an important ally from Tamil Nadu (DMK). Incidentally, DMK was a strong supporter of disinvestments of PSUs under the erstwhile NDA government. Besides these domestic concerns, global factors such as North Korea testing missiles and renewed worries about interest rates increasing in Japan added to the nervousness. In this backdrop, it was a tug-of-war between the bulls and the bears with bears winning the battle towards the end of the week.
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