(raw materials / closing price /% change)

Oil 51.91 +0.52%

Gold 1,198.60 -0.06%

European stocks mostly turn positive after opening lower at the start of the new week, now moderately extending last week's rally. Stocks were under pressure after weaker-than-expected Chinese data, fuelling concerns over the economic outlook of the world's second largest economy. This week all eyes are on the upcoming ECB's monetary policy meetings scheduled for Wednesday.

The commodity heavy FTSE 100 index is currently trading -0,43% quoted at 7,059.40 points weighed by losses in the mining sector. Germany's DAX 30 is trading at 12,380.92 points +0.05%. France's CAC 40 is currently trading at 5,242.33 points, +0.04%.

Oil is trading higher today continuing Friday's bullish momentum on weaker Chinese data that could lead to further stimulus measures taken by the Peoples Bank of China - China is the world's second largest consumer of oil - and decreasing numbers of active drilling rigs in the U.S. Baker Hughes reported on Friday that rig-numbers declined the most in a month and the 18^th consecutive month. Still, U.S. stockpiles are at a record and Saudi Arabia, the OPEC's largest producer is pumping at record levels. Brent Crude added +1.47% currently trading at USD58.72 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate rose by +1.51% currently quoted at USD52.42.

Gold fell under the important USD 1,200 level again at the start of the week after Friday's pullback from a 4-day decline. The minutes of the last FOMC policy meeting showed that the board is divided on whether to hike interest rates in June or not. Even though the weaker-than-expected GDP growth and disappointing labour market data could delay a potential interest rate hike a lot of market participants speculate that the FED is on track for a mid-year hike, weighing down the precious metal. According to FED Governor Powell the FED could hike interest rates as early as June if labor markets data remains strong and points to a recovery. Markets focus on key U.S. data including inflation, consumer sentiment as well as industrial production and housing starts due later this weak

A stronger US dollar is putting pressure on gold, as it reduces the metal's appeal as an alternative asset and makes dollar-denominated commodities more expensive for holders of other currencies.

Gold is currently quoted at USD1,198.10 -0,80% a troy ounce, falling under the USD1,200 mark again. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Tuesday the 17th of march gold traded as low as USD1,142.50, a three-month low.

BLOOMBERG
The Curious Case of Japan's Hidden Inflation

If the Bank of Japan's core price gauge is anything to go by, inflation has all but disappeared. Try telling that to anyone who pays the bills.

The general public thinks the cost of living is rising more than twice as fast as the official inflation rate, a survey of consumers by the Bank of Japan shows.

So why the gap? Naohito Abe, a professor at Hitotsubashi University, has one possible answer in an index that captures changes in prices of new products that account for almost half of goods sold at an average retail shop, and often don't show up in official data.

Together with Intage Inc. and the New Supermarket Association of Japan, he's come up with a measure that also captures the sneaky ways businesses milk consumers -- by reducing the size of a product while charging the same price.

Source: http://www.bloomberg.com/news/articles/2015-04-13/the-curious-case-of-japan-s-hidden-inflation

REUTERS

World Bank cuts East Asia growth forecast, warns of risks to outlook

(Reuters) - The World Bank cut its 2015 growth forecasts for developing East Asia and China, and warned of "significant" risks from global uncertainties including the potential impact from a strengthening dollar and higher U.S. interest rates.

The Washington-based lender expects the developing East Asia and Pacific (EAP) region, which includes China, to grow 6.7 percent in each of 2015 and 2016, down from 6.9 percent growth in 2014.

That's down from its previous forecast in October of 6.9 percent growth this year and 6.8 percent in 2016.

China's growth is likely to slow due to policies aimed at putting its economy on a more sustainable footing and tackling financial vulnerabilities, the World Bank said in its latest East Asia and Pacific Economic Update report on Monday.

Source: http://www.reuters.com/article/2015/04/13/us-worldbank-asia-idUSKBN0N404O20150413

BLOOMBERG

Oil Bulls Boost Wagers by Most Since 2010 as Output Seen Peaking

Speculators increased bullish oil bets by the most in more than four years, wagering that the U.S. production boom is slowing.

Hedge funds boosted net-long positions on West Texas Intermediate crude by 30 percent in the seven days ended April 7, the biggest jump since October 2010, U.S. Commodity Futures Trading Commission data show. Long bets rose to a nine-month high, while shorts tumbled 21 percent.

U.S. crude output and inventories may peak this month amid a record drop in rigs exploring for oil, Goldman Sachs Group said. Refiners returning from seasonal maintenance will add about 500,000 barrels a day of demand by July, the Energy Information Administration forecast, helping ease the biggest glut in 85 years.

Source: http://www.bloomberg.com/news/articles/2015-04-12/oil-bulls-boost-wagers-by-most-since-2010-as-output-seen-peaking