Market Recap - Asian Equities trade mixed as China downgrades its growth target
Its been a good week so far for the US indices as all three major bourses closed higher again last night, Once again it was a mixed session in the Asia Pac area as the Nikkei 225 closed 1% higher and the Shanghai Comp. 0.74%. In Australia, the ASX was not as bullish as it closed 0.36% lower after the financials and mining companies struggled. Elsewhere, on the on the growth front, China cut their GDP target from 6.5% to 6%.
In the commodities markets, gold is looking choppy at the highs. Once again gold climbed overnight to aim for $1300/oz after yesterday's bearish price action. Some of the bullishness is kicking in after another Fed member (Clarida) claimed the Fed can afford to wait for another hike.
Copper fundamentals are all based on the softer USD and the China-US talks at the moment. It's a shame that the talks are stalling as the strong greenback kept base metal prices depressed for some time. It has been said that China's Liu will go to the US to resume talks at some point this month.
Spot WTI continues its climb this morning and trades at $52.56/bbl. The liquid gold is still feeling the effects from the comments from Saudi Arabia as they stated they will do more in order to balance the oil market.
On the agenda today we have UK GDP, UK manufacturing, UK trade balance, US CPI, the Fed budget balance and ECB's Mersch, Nowotny and Makuch all speak.