Asian equities rise off the back of trade talks
US bourses were choppy yesterday as the market digested all of the US-China trade-related comments. They eventually closed slightly lower. This yo-yo price action will continue all week so the risk environment will be very fragile. In the Asia Pac area, all of major indices have traded in the black and in the EU, we have already had German industrial production data which beat expectations.
In the precious metals market, gold took a hit overnight as the risk sentiment took a positive turn. The yellow metal now trades at $1489/oz and could reach the $1485/oz support level.
Copper has had a great run after the positive sentiment from the trade talks. China has also come back to the market today so there could be some positivity due to that. There has not been a strong reaction to the positive German data but the LME pits have not opened yet so we may need to give it some time.
Spot WTI has moved up slightly to trade at $52.26, 0.78% higher. Today we get the latest API inventory levels and after last weeks 5.920mln draw it will be interesting to see if the trend can continue.
Today we are on the lookout for US PPI, UK labour productivity and comments from ECB's Lane, de Cos, BoE's Tenreyro, Haldane, Fed's Powell, Evans and Kashkari.