Equities trade softer overnight but gold shoots higher
It was a very volatile end to the US session and overnight as equities markets fell following more tough talk between the US and China and some weak earnings from the likes of Netflix. All of the major bourses from America and the Asia Pac area closed lower, the Nikkei 225 was the main laggard down nearly 2%.
In commodities markets, gold had a good session after holding up well amid dollar strength a few days earlier. Overnight the price hit a high of $1430.03/oz after risk off sentiment filtered through to the markets. Silver has managed to rise 6% in the last 4 sessions and trades above $16/oz this morning.
Copper has started to consolidate once again, $2.70/lb seems to be the major pivot level. Elsewhere, we may get some more supply into the market as Peru's President rejected a demand to cancel a permit for Southern Copper Corp’s $1.4 billion Tia Maria copper mine project due to protests from local residents.
After 3 sessions of weakness, WTI has bounced back slightly overnight but trades at $56.81/bbl. The weakness comes as gasoline stockpiles rose this week suggesting weak demand in a peak travel season in the US.
Today we will be looking out for UK retail sales, Philly Fed data and comments from Fed's Bostic and Williams. There are also earnings from Morgan Stanley and Microsoft.