Equities bounce back after tariff delay
After the reports on financial media that the tariffs would be delayed yesterday indices performed well in the US with the Nasdaq the main outperformer rising 1.95%. In the Asia Pac area, it was much of the same as the Nikkei 225 (0.98%), ASX (-0.42%) and Shanghai Comp. (0.40%) all closed in positive territory. Although there was that sense of bullishness, some of the shine was taken off by events in Hong Kong has the police moved in on the airport to clash with protestors once again. The situation has the potential to cause some serious problems in the markets and needs to be watched very closely.
After the aforementioned tariff news, the greenback strengthened and subsequently gold moved lower. The precious metal lost 0.60% yesterday and is down 0.27% overnight trading at $1479/oz.
In the energy complex, oil once again had to deal with a build in the API inventory level. Although the news of the tariff delay pushed the WTI futures contract up nearly 4% in the previous session.
Copper also jumped off the back of the news the Comex contract trades at $2.61/lb despite some poor Chinese industrial production data overnight.
Today we are on the lookout for German GDP, Swedish & UK CPI, EZ unemployment and GDP, EZ industrial production and DoE's.