TODAY COMMODITY MARKET NEWS & LEVELS OUTLOOK REPORT 18 SEPT 2017.

COMMODITY MARKET NEWS

Precious Metals

Precious Metals are likely to open lower as the dollar and equities advanced owing to better risk appetite. Central bank policies are back into focus as geopolitical tensions have eased in the past few days. The BOE last week hinted that a rate hike may happen sooner than markets expect. Earlier, the ECB indicated that its stimulus unwinding plan could be out by October. The Fed meeting this week will be equally important for hints about the balance sheet trimming. The Fed is likely to provide a timeline of its start and keep the possibility of a December rate hike open. The headline CPI in the US touched 1.9% y/y in August, a seven month high while core CPI grew at 1.7% y/y. Consequently, December rate hike odds have reached close to 55%.

Base Metals

Base metals took a halt form the recent sell off, but still continue to trade near last week's one-month low, while prices in Shanghai slid for a fourth consecutive session on concerns over slowing growth in top consumer China. China posted disappointing data last Thursday -- including its slowest growth in investment in nearly 18 years -- suggesting economy is finally starting to lose some momentum as borrowing costs rise. China's non-ferrous metal output fell to a oneyear low in August, in a sign that Beijing's environmental crackdown is curbing supplies of base metals, with aluminum also hit by efforts to rein in output.

Energy

Crude oil is likely to open flat after a strong rally last week with WTI holding near $50 levels. US oil rig count fell for yet another week and helped prices rally further. The number of active rigs drilling for oil dropped by 7 to 749 last week, a second straight decline. The rig count has fallen by 7 in Q3 so far after increasing sharply in the first half of this year. The trend for oil prices was already up last week after the OPEC and IEA raised global demand forecasts.