TRADERS´ Blogs

Spain's industrial production declined by calendar adjusted 3.3% YoY in October. Output was forecast to fall 6.4%, following a 7.5% drop a month ago. Reversing a negative trend, industrial output grew 0.6% annually on unadjusted terms. Output was down 12.1% in September and 2.5% in August. Production of consumer goods dropped 2.9% and durable consumer goods fell by 6.6%. Intermediate goods output fell by 5.4%.

Greece will spend up to (EURO) 10 billion ($13 billion) in a heavily-discounted bond buyback program that it hopes will help stabilize its debts. Private holders of Greek bonds, such as banks and pension funds, have until Friday to register their interest in participating in the buyback program. It will be conducted by what is known as a Dutch auction, a type of auction whereby prices start high and then decline. The buyback should be completed by Dec. 17.

Demand for steel in China is expected to rise 4.1% in 2013. The 2013 China Steel Demand Forecast also predicted a decline in iron ore prices due to increasing supplies and slow growth in the global manufacturing sector. Steel demand in China will reach 666 million metric tonnes in 2013. Actual consumption of steel in China was 640 million tons in 2012, an increase of 3.6% on the previous year. Crude steel output in 2013 will reach 746 million tonnes, up 4.2%. The figure for 2012 is estimated to be 716 million tonnes, up 4.5% YoY

South Korea saw an unadjusted current account surplus of $5.82 billion in October, down from the revised $5.91 billion surplus in September (originally $6.07 billion). The goods account was roughly unchanged from the previous month at $5.21 billion dollars, while the services account surplus widened to $0.38 billion from $0.32 billion in the previous month. Through the first 10 months of the year, the current account surplus climbed to $34.13 billion, already exceeding the central bank's forecast of $34 billion for all of 2012.

Silver followed suit and climbed by Rs 500 to Rs 63,000 per kg on increased demand from industrial units and coin manufacturers. A firming global trend, which normally sets price trend on the domestic front here, topped the gold prices to $1,750 an ounce as weak dollar spurred demand for the precious metals as alternative investments also boosted the sentiment.

Silver prices rose Rs 96 to Rs 64,100 per kg at the futures trade as speculators enlarged their positions on hopes of a rise in demand during marriage season amid a higher global trend. At the Multi Commodity Exchange, silver for delivery in March rose Rs 96 or 0.15 per cent to Rs 64,100 per kg with a business turnover of 943 lots. Likewise, the white metal for delivery in December gained Rs 66 or 0.11 per cent to Rs 62,113 per kg, with a business turnover of 5,619 lots. Increased buying by speculators on expectations of a rise in spot market demand during the marriage season amid a higher global trend mainly pushed up silver futures.

The Nikkei climbed 1% to 9235.85 by the midday break after slipping 0.1% to snap a four-session winning run. The broader Topix advanced 0.8% to 768.02 in active trade, with volume at 59% of its full daily average for the past 90 trading days. Japan's exports slid 6.5% in October from a year earlier to mark the 5^th consecutive month of declines, weighed down by weakening global demand and a territorial dispute with China. Exporter shares that benefited from the weaker yen included Toyota Motor Corp, Canon Inc, Honda Motor Co and Nissan Motor Co, which gained between 1.2 and 3%.

Benchmark 10-year bond yield was trading steady at its previous close of 8.19%. Total traded volume was low at Rs 59.55 billion. If the RBI announces an OMO by the end of trade on Tuesday, the 10-year yield will ease towards 8.15%. However, it is not expected a sharp spike in yields if there is no OMO as the call rate will continue to hover in an 8-8.10% band. The dealer added that thin volumes are also due to growing uncertainty over rate cuts with some traders also unsure about a cut in January. Government will sell Rs 130 billion of bonds this week.

 Gold prices rose Rs 49 to Rs 31,689 per 10 gm at the futures trade as speculators created fresh positions, taking positive cues from overseas markets. Gold for delivery in December rose Rs 49 or 0.15% to Rs 31,689 per 10 gm with a business turnover of 403 lots. Similarly, the metal for delivery in February moved up by Rs 53 or 0.17% to Rs 32,100 per 10 gm with a business turnover of 36 lots. Fresh buying by speculators in tandem with a firm global trend as weak dollar boosted appeal for the metal, mainly led to a rise in gold futures.

Singapore cut its growth forecast for this year as a weak global economy hits the island's mainstay manufacturing industries and warned of an anemic expansion in 2013. Its 2012 growth forecast to 1.5% from 2.5% after the economy barely grew in the third quarter.