Equities rise again overnight and commodities benefit from a weaker USD

Published date: 20/09/2019

Equities markets traded higher last night in the Asia Pac area following a positive bout of risk sentiment. The PBoC cut its lending rate from 4.25% to 4.20% which is another sign of stimulus from China. The Nikkei 225 rose 0.16%, ASX 0.20% and the Shangai Comp. 0.10%. 

In the UK, GBP pushed higher as comments from Europe softened somewhat after EC President Juncker said a Brexit deal can be reached by 31 Oct.

In commodities markets, Spot WTI picked up slightly due to Tropical Storm Imelda forcing the suspension of the Marketlink pipeline refineries and terminals. Today the price is holding at $58.79/bbl up 0.03% overnight.

Gold also trades higher and has pushed to $1505/oz 0.05% higher overnight. After the FOMC disappointed the markets this week it seems that the yellow metal came back in favour. 

Copper also pushed up overnight but like gold, this is mainly due to USD weakness. Next week the market will look out for German PMI data and Chinese industrial profits for further clues to the extent of the global slowdown.

Today we are looking out for Canadian retail sales, Baker Hughes rig count, CFTC data and comments from Fed's Williams and Rosengren.


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