Commodity Weekly Update - West Texas Intermediate Crude Surged to the Highest Level
West Texas Intermediate crude surged to the highest level in a month as U.S. employment rose more than forecast in April, stoking speculation that demand in the world's biggest oil-consuming country will increase. WTI for June delivery jumped $1.62, or 1.7 percent, to $95.61 a barrel on the Nymex, the highest settlement level since April 2. The volume of all futures traded was 32 percent above the 100-day average for the time of day. Prices are up 2.8 percent this week. Bullion posted a 0.3 percent gain for the week, extending last week's rally of more than 4 percent.
The metal came under pressure as the S&P 500 and Dow industrials rallied to intraday records after data showed U.S. nonfarm payrolls rose 165,000 last month and the jobless rate fell to 7.5 percent, the lowest since December 2008. A more than 6 percent rally in copper and gains in other commodities after the payrolls report supported gold, but the Dow's rise above 15,000 for the first time dented bullion's safe-haven status. The ECB's decision to cut its main rate to a record low of 0.50 percent on Thursday came a day after the Fed's recommitment to its stimulus program. In April, the Bank of Japan promised to inject about $1.4 trillion into its economy to spur growth.
American employers took on more workers than forecast in April and the jobless rate unexpectedly fell to a four-year low of 7.5 percent, reflecting confidence in the outlook for the world's biggest economy. Payrolls expanded by 165,000 following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington. Revisions added a total of 114,000 jobs to the counts for February and March. Stocks rallied, sending the Dow Jones Industrial Average briefly above 15,000 for the first time, as the report bolstered expectations that the almost four-year economic expansion will overcome a second-quarter slowdown. Hiring advanced even as employers witnessed the onset of planned government spending reductions that the Federal Reserve said are hindering growth.
Philippine stocks rose to a record after it beat Indonesia to win an investment grade from Standard & Poor's, as President Benigno Aquino outshines Susilo Bambang Yudhoyono in improving government finances and spurring growth. The rating on the Philippines' long-term foreign-currency- denominated debt was raised one level to BBB- from BB+, with a stable outlook, S&P said in a statement yesterday. In contrast, the assessor revised its outlook on Indonesia's BB+ rating to stable from positive.
India cut interest rates for a third straight meeting to revive growth, extending the only reduction in borrowing costs among major emerging nations this year. The yield on the government note maturing June 2022 rose to 7.77 percent from 7.72 percent yesterday as of 1:53 p.m. in Mumbai. The rupee weakened 0.2 percent to 53.945 per dollar, while the BSE India Sensitive Index slipped 0.6 percent. Inflation based on wholesale prices eased to 5.96 percent in March from a year earlier. The Reserve Bank said it will seek to €condition the evolution of inflation€ to 5 percent by the same month next year. Food costs have a heavier weighting in the consumer gauge, which surged 10.39 percent in March.
The metal came under pressure as the S&P 500 and Dow industrials rallied to intraday records after data showed U.S. nonfarm payrolls rose 165,000 last month and the jobless rate fell to 7.5 percent, the lowest since December 2008. A more than 6 percent rally in copper and gains in other commodities after the payrolls report supported gold, but the Dow's rise above 15,000 for the first time dented bullion's safe-haven status. The ECB's decision to cut its main rate to a record low of 0.50 percent on Thursday came a day after the Fed's recommitment to its stimulus program. In April, the Bank of Japan promised to inject about $1.4 trillion into its economy to spur growth.
American employers took on more workers than forecast in April and the jobless rate unexpectedly fell to a four-year low of 7.5 percent, reflecting confidence in the outlook for the world's biggest economy. Payrolls expanded by 165,000 following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington. Revisions added a total of 114,000 jobs to the counts for February and March. Stocks rallied, sending the Dow Jones Industrial Average briefly above 15,000 for the first time, as the report bolstered expectations that the almost four-year economic expansion will overcome a second-quarter slowdown. Hiring advanced even as employers witnessed the onset of planned government spending reductions that the Federal Reserve said are hindering growth.
Philippine stocks rose to a record after it beat Indonesia to win an investment grade from Standard & Poor's, as President Benigno Aquino outshines Susilo Bambang Yudhoyono in improving government finances and spurring growth. The rating on the Philippines' long-term foreign-currency- denominated debt was raised one level to BBB- from BB+, with a stable outlook, S&P said in a statement yesterday. In contrast, the assessor revised its outlook on Indonesia's BB+ rating to stable from positive.
India cut interest rates for a third straight meeting to revive growth, extending the only reduction in borrowing costs among major emerging nations this year. The yield on the government note maturing June 2022 rose to 7.77 percent from 7.72 percent yesterday as of 1:53 p.m. in Mumbai. The rupee weakened 0.2 percent to 53.945 per dollar, while the BSE India Sensitive Index slipped 0.6 percent. Inflation based on wholesale prices eased to 5.96 percent in March from a year earlier. The Reserve Bank said it will seek to €condition the evolution of inflation€ to 5 percent by the same month next year. Food costs have a heavier weighting in the consumer gauge, which surged 10.39 percent in March.