Equities start the week higher and ECB's Draghi questions Fed's independence
Equities start the week on the front foot in the Asia Pac area. The Nikkei 225 rose 1.37%, Shanghai Comp. 0.59% and Australia's ASX hovers just above flat. In terms of the weekend's news, the main story came from the ECB where Mario Draghi questioned the independence of the Fed. There was more from the US president who said Fed rate rises have been “a killer” and that stocks would be 5,000 to 10,000 points higher without them.
All of the major commodities are trading in the red this morning. Spot WTI trades at $63.55/oz as we head into the trading week. There was lots of talk from Russia this weekend where it was noted that Russia may work with OPEC to either extend the cuts or cut slightly more but these reports have not been confirmed.
Gold is also trading lower as the risk on environment has really hit the precious metal. Gold now trades under $1290/oz and continues to look weak leading into this week.
Copper finished last week strong but the $3.00/lb level is looking formidable. This week the key consolidation levels are between $2.98/lb and $2.84/lb.
Today we are on the lookout for NY state manufacturing, BoC outlook survey and any comments from BoE's Haskel.