Thursday, 26 July 2012
FKLI related news
The Dow Jones Industrial Average (INDU) capped its biggest advance in almost a month after European Central Bank President Mario Draghi pledged to defend the euro. (Bloomberg)
Mr. Draghi hinted in a London speech that the bank was ready to restart its bond-buying program to help ease the crisis. He also made it clear the bank is willing to do "whatever it takes" to keep the euro zone together.
Oil rose for a third straight day on Thursday and most other commodities ended up as well after the European Central Bank pledged to do all it could to prevent a euro zone collapse.
FKLI July contract opened higher this morning at 1629, but dropped to 1623 around midday. Today’s Support is located around 1615 and Resistance is at 1635.
FCPO related news
Malaysian crude palm oil fell to its lowest in more than five weeks on Thursday, as investors turned more bearish on forecasts for rain in parts of the U.S. Midwest that could bring some relief to the drought-hit soy crop. (Reuters)
Crude palm oil futures on Malaysia's derivatives exchange ended sharply lower Thursday due to lingering concerns over the health of the global economy, weak palm oil exports and improved weather forecasts for the U.S. Midwest, temporarily allaying fears of widespread damage to the U.S. soybean crop. Slowing growth momentum in China and the euro-zone debt crisis are also damping market sentiment, traders said.
July export figures were also bearish. Cargo surveyor Intertek on Wednesday said July 1-25 exports slipped 14% from the same period in June to 1.03 million tons. Another surveyor, SGS (Malaysia) Bhd., put July 1-25 exports at 986,829 tons, a decline of 19% on month.
Oil futures rose for a third straight day on Thursday after a pledge by the European Central Bank to protect the euro zone eased some worries about the region's debt crisis.
FCPO October contract closed sharply lower yesterday at 2882 but opened higher this morning at 2905. Downside risk is likely increased as the benchmark October will recover as the downside for Soy oil prices is likely capped around 51.50 - 51.60 cents per pound. Conclusively, medium term downtrend is still in motion with expectation on mild technical rebound along the way. Today's Support is located around 2830 and resistance is around 2950.