While the broad sentiments prevailing in the market continue to be bearish, commodities and shares were seen rising following a rebound in euro. Recovery in Euro from a four month low after a surprisingly strong German GDP data took the pressure off the market and slightly lifted the sentiments. German economy grew 0.5 per cent in the first quarter against the expectation of 0.1 per cent. Euro Zone GDP data indicated that the region avoided recession though the economy continued to remain fragile.
However, the overall sentiments were feeble on deepening worries over euro zone crisis and political uncertainty in Greece. Spot gold was off its four and a half month low as continuing global economic uncertainty boosted the yellow metal’s safe haven appeal. The recent slide in prices attracted lower level buying from Asia too.
Gold was seen trending lower as the rupee retreated after breaking against a US dollar. Base metals in LME were moving mostly steady to negative. Concerns over slowing growth in China and political uncertainty in Greece dragged down copper prices, mostly ignoring the upbeat data from Germany, to a four month low.
MCX copper followed the suit too. Crude oil pared the earlier losses and was seen rebounding though it continued to hover near the five month low levels in Nymex. However, expectation of higher build up in crude oil inventories may keep the gains under check.
Market mood continue to remain skeptical as investors fretted about the possibility of a Greek exit from the Euro zone. With financial markets under the grip of political mayhem in Greece, all eyes would be on the U.S retail sales and manufacturing numbers slated for release in the evening to cushion battered sentiments. In foresight, financial markets would be fervently watching out for political events in Europe for further cues.
With Europe reeling under both financial and political strain, all eyes are on today’s meet between German Chancellor Angela Merkel and new French president Francois Hollande. Also in the limelight amidst falling crude oil prices, are the API crude inventories data scheduled for release early morning and could further show buildup in stockpiles.
The recent string of weak numbers from China is raising fresh concerns about the pliability of the Chinese economy amid softening global demand and, in that regards, housing numbers from the country would be an important economic event in coming days as it could have significant bearing on commodity prices.