Equities are higher as trade war rhetoric cools once again
There was some market talk yesterday that China are looking to ease the tone of the trade war between the US. The market obviously took this in a positive way and the ASX (0.36% and Nikkei (0.91%) moved higher. The Shanghai Comp. was subdued after a lacklustre liquidity injection from the PBoC.
Markets are also looking forward to the ECB rate decision and statement tomorrow. So expect some tentativeness.
Gold moved slightly higher overnight as bond yields rose once again. Interestingly this move came as stocks and the US dollar made gains. Price action in the EU needs to be watched closely.
Copper remained firm after it was helped by the news that China will be looking to restart purchases of US agri products. This will help ease the worries about trade war escalation.
Spot WTI's winning run stalled despite a draw in API inventory data. The market moved after Trump fired National Security Advisor Bolton.
Today we are looking out for the OPEC report, US PPI and DoE's