Global growth concerns hitting equities hard
After a good start to the week for equity markets, it seems they are tailing off towards the end of the week in the US as the three major bourses were down an average of 0.95% yesterday. Overnight there was no escaping it in the Asia Pac region, with the Nikkei (-1.98%) and ASX (-0.34%) both closing lower. The mix of trade wars, China slowing down and revised growth outlooks in UK, Australia and Europe is looking toxic. In FX markets AUD took the brunt of the weakness after the recent GDP revision overnight.
In commodities markets, iron ore has hit its highest level since 2014 after the Vale crisis in South America. Copper pulled back overnight after rejecting a move higher outside the consolidation high of $2.83/lb once again, this morning price is 0.33% lower at $2.81/lb.
In yesterday's session gold finally managed to capitalise on the weakness in equities. The yellow metal rejected a move below $1303/oz and now trades £1308/oz however, the price is marginally lower overnight.
WTI took a drop yesterday after global growth issues worried traders and investors in the liquid gold. This morning the price of spot WTI trades at $52.09/bbl, there is an intraday support of $51.10/bbl to keep an eye on if the bearishness continues.
Today we are on the lookout for Canadian employment data, US Baker Hughes, any more comments on Brexit and any comments from Fed's Daly.