Equities markets trade higher on ECB day

Published date: 12/09/2019

There was even more good news on the trade front as US President Donald Trump said the US will delay the imposition of an additional 5% tariffs on China from 1st Oct to 15th Oct. In addition to this, China also said it would consider farm imports from the US. As the risk sentiment improved so did the price action in the US bourses. The Nasdaq outperformed and rose over 1%, while in the Asia Pac area the Nikkei 225 (0.86%), ASX (0.25%) and Shanghai Comp. (0.81%) all closed in the black.

Today is a massive day for all markets as its the ECB rate decision and statement. There is a broad consensus that they will cut rates by 10bps but the market are looking to see if they will add a new stimulus packed to their monetary policy. A full preview will be available later in the day.

In the commodities markets, oil took a dive yesterday after the US said they may soften their stance against Iran. There is also talk of Trump and Iranian President Rouhani meeting about the current economic sanctions on the country.

Gold moved sideways as traders are in limbo following the risk-on sentiment in markets. The fact that the price is holding around $1500/oz is interesting as the strength in the US dollar and equities is persisting.

Copper moved higher following the trade war easing mentioned in the first paragraph. This morning the price looks like it may break out of the consolidation area and is 0.97% higher at $2.63/lb.

Today we are looking out for the ECB rate decision, Turkish rate decision, US CPI and comment from Draghi and OPEC.


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