Equities trade mixed overnight as gold struggles

Published date: 06/11/2019

It was a mixed close for equities in the Asia Pac area overnight. The Nikkei 225 closed 0.22% higher, while the ASX (-0.55%) and Shanghai Comp. (-0.43%) both struggled. Yesterday the US posted a better than expected ISM non-manufacturing result and the markets rejoiced. The USD strengthened against most of its major counterparts. Also this morning we have had a positive German factory orders print compounding the good news. Lastly, Fed's Barkin said yesterday that he thinks the Fed should pause here and see what affects their latest monetary policy moves have had.

It was a pretty tough session for gold yesterday as the precious metal fell 1.74%. This all came as bond yields rose and USD strength kicked in. It seems investors are positioning away from safe haven assets.

Copper had a good session yesterday but is marginally lower overnight. The positive US and China trade rhetoric is pushing the base metal higher.

WTI has moved higher off the back of the optimism too but the Iranian oil minister has also hinted that there could be more OPEC cuts on the way. Late last night we also got the latest API inventory figures which produced a build but the market has not really taken too much notice.

Today we are looking out for PMI's from the EU home nations, the UK Autumn budget, US unit labour costs, Canadian Ivey PMI, DoE's and comments from Fed's Harker, Williams, Evans and ECB's de Guindos, Mersch and Holzmann


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