Market Recap: Equities Markets Sell Off As Major ETF Outflows Are Noted
Risk finally caught up with markets yesterday in spectacular fashion as the US bourses capitulated. Equities in the Asia Pacific area also felt the effect of the sell-off, as the Nikkei (-3.96%), ASX (-2.74%) and Shanghai Comp. (-5.26%) all sold off heavily. The US President was briefed on the situation and said 'The Fed have gone crazy and this is just a correction''.
Gold rose yesterday in line with the risk off theme, although, not nearly as much as you would expect. This morning the precious metal trades around the $1193/oz area and if the selling continues then look out for the $1200/oz level.
Oil markets have been subdued overnight as a missive build in API's was noted. This week API weekly stocks rose to 9.750M vs last weeks 0.907M reading.
Copper is in danger of taking out the $2.71/lb support level this morning after a weak performance yesterday. The industrial metal is feeling the effects of the global sentiment after rating agencies downgraded the global growth outlook.
Today we look out for comments from BoE's Vlieghe, the OPEC monthly report, US CPI, ECB minutes and the weekly DoE's....