Crude Oil Trades Sideways ahead of US Payroll Data

Equities opened higher in European session as led by mining shares. Agreement on Australian mining tax temporarily overshadowed growth concerns. Gains in stock markets lent supports to commodities but trading will remain thin and choppy ahead US’ employment report.

Stocks in Asia declined, taking the MSCI Asia Pacific Index to the deepest weekly drop since May. Slowdown in China remained the major issue. After both the government and HSBC’s survey showed weaker-than-expected PMIs in June, Goldman Sachs revised down the country’s 2010 growth forecasts to +10.1% from +11.4% and CPI forecasts to +2.4% from 3.5%, citing the government’s measures to curb lending and rises in property prices as major reasons.

However, European bourses managed to shrug off weakness in Asian markets and edged higher, as led by rallies in mining stocks such as BHP Billiton and Rio Tinto.

Crude oil stabilizes after falling over the past 4 days, recording a -7.53% loss, on risk-aversion selling. Heating oil and gasoline also trade narrowly. Further downside is likely in coming weeks as investors may have turned bearish on the demand outlook after dismal data released in the US and China.

Gold price rebounds after briefly breaking below 1200 again. Currently trading at 1212, the yellow metal attracts buying interests as it recorded the deepest one-day fall in 5-months. As we have been emphasizing, uptrend in gold remains intact as worldwide economic environment is still uncertain.

Goodwill introduces GLAD scheme

Goodwill Finance Limited in association with National Life Insurance Company launched a Goodwill Life Assurance Deposit (GLAD) Benefit amid a function.

Under the scheme, Goodwill Finance will provide the coverage of life insurance with a sum equal to the amount of deposit. In addition to life insurance policy, accountholders do not have to worry about paying premium as the finance company would pay the premium from the interest accrued in the account.

Besides that, the Goodwill guarantees the additional bonus betweens 75 percent to 200 percent of the sum insured by the maturity period of the policy. Currently the maturity period has been fixed 15 and 20 years. “However, the account holder could increase the maturity period after negotiating with Goodwill Finance Company and National Life Insurance,” said Saroj Kaji Tuladhar, CEO of Goodwill Finance.

The account holders can enjoy the loan against GLAD benefit account too. The account can be opened at the minimum balance of Rs. 25,000 and the maximum amount is Rs. 500,000. Anybody between the ages of 17 years to 50 years can open the account.