Global Exchanges, Metals and Energy in the Morning

All the Asian indices are trading the green. Shanghai and Hang Seng are up by 0.3% and 1% respectively. Nikkei and Kospi are trading in the green up by 0.6% and 0.9% respectively while Strait Times and Taiwan are up by 0.9% and 1.9% respectively.

Worries about a global growth slowdown and uncertainty surrounding Europe’s debt crisis kept investors on edge and trading choppy on Monday. Still, U.S. markets ultimately closed the day not far from where they opened. The S&P 500 closed flat. NASDAQ gained 12 points, or 0.5%. Dow Jones dropped 17 points, or 0.1%. Factory orders declined 0.6% in April, the government reported on Monday. The report was weaker than the 0.1% increase expected.  

Anxieties over the health of the Spanish banking system and the possibility that Greece could soon exit the euro remain high. Fear and Greed index remained deeply entrenched in extreme fear territory.

The European markets closed mixed on Monday, on a relatively light trading day. The U.K. market was closed due to the Queen’s Diamond Jubilee and will be closed again on Tuesday. DAX in Germany fell 1.2%, while France’s CAC 40 rose 0.1%. British markets were closed for a bank holiday.

Gold eased slightly on profit-booking, after central banks refrained from adding additional stimulus measures to boost their economies amid Europe’s intensifying fiscal crisis and signs of a slowdown in the US.

Gold holdings  of SPDR gold trust, the largest ETF backed by the precious metal, increased to 1,273.88 tons, as on June 1.

Silver holdings of iShares silver trust, the largest ETF backed by the metal, increased to 9,638.9 tons, as on June 4. The dollar index, which measures the US unit against a basket of six major, fell to 82.878 from 83.035 on late Thursday.

In Europe, France and the European Commission signaled their support for an ambitious plan to use the euro zone’s permanent bailout fund to rescue debt stricken banks, in n effort to reassure investors that they can contain an escalating crisis.

Copper prices declined to an 8-month low on COMEX, but later rebounded on support from a rally in euro against the dollar and steadier tone in equities.  Copper fell for the fourth straight session, unable to sustain an early bounce from a 7-month low, as mounting fears over the global economy continued to weigh on the demand outlook for industrial metals.

Copper futures for July delivery closed slightly down at $3.307 per pound on the COMEX of the New York Mercantile Exchange. Some US copper fabricators have resorted to buying primary metal rather than scrap due to tightness in supply, which remains supportive to cathode premiums, traders said.

The premium for primary aluminum shipments to Japan in the July-September quarter has been set in a range of $200-$210 per ton for several deals, a trader said.

Crude oil futures close to 1%, as the euro strengthened against the dollar after European leaders agreed to discuss closer banking cooperation.

Natural gas rose from a four-week low, on speculation that warm-weather forecasts for the eastern US will increase fuel demand from power plants.

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