Home / Knowledge / News / Textiles / Market looks gloomy on Friday
Market looks gloomy on Friday
25
Oct '08
Things looked gloomy Friday right at the beginning of the day. All European and Asian stock markets took a dive with the major benchmark indices tumbling up to 10 percent. On limit down move by S&P 500 and the Dow Jones futures, Wall Street opened up much lower by dropping nearly 500 points at one time. Dollar index continued to show strength which drove down the commodity prices.

Assisted by bearish options, cotton tested to the low side in the early morning and made a limit down move on both December and March contracts. As the dollar came off from its high of the day, the nervous market received a much needed rally to recover part of the losses. Sell off came in at the end of the session when traders got ready for the weekend, which settled the day with a hefty loss of 285 points on Z'08 and 300 points on H'09.

Trading remained choppy and volatile during the course of the week and the open interest managed to stay stable at the 270k area. Today's traders commitment report revealed the same story when big specs and index traders continued reducing their exposure in cotton. The Index funds reduced another 6,000 contracts in their net holdings. Lifting hedges on sales on the other hand, the non commercials reduced their net short positions by close to 5,000 contracts.

Technicals are looking more stabilized this week after the bounce at the beginning of the week, but world economy situation is continuing to deteriorate. Growth in Asia is slowing down and there's plenty of nervousness in Europe.

RSI is at the low 30's area, and MACD is undecided making a double cross. Scale down demand was seen with the spot month under 50 cents and the two continuous export reports have shown decent numbers. We are now approaching the December contract low of 45.66 established just last week, and it's very likely for the market to make another run towards this level sometime in the near future.

Ecom USA

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search