Market Recap - Equities remain in bullish mood
Equities markets in the US clearly felt in bullish mood after the midterm election results. All 3 major bourses closed in the black with the Nasdaq outperforming trading higher by 2.64%. Over in the Asia Pacific area, the Nikkei (1.83%) and ASX (0.53%) followed the US, however, the Shanghai Comp. closed lower 0.22% after initially trading well earlier when it opened.
In commodities markets, WTI had a rollercoaster session yesterday as sentiment moved bullish after there was talk of Russian and Saudi Arabia cutting supply again due to high inventory levels. Then we had the latest DoE inventory data which produced a larger than expected build and prices fell once more, this was also compounded by a rebound in the USD.
As bullish sentiment returned to equities gold prices dropped off as risk on mode kicked in. The precious metal trades 0.15% lower this morning at $1224.50/oz, with the next major support standing at $1214/oz.
Copper is a mixed bag, the USD strength does not benefit the industrial metal but the election result favours international trade relations. We saw some bullishness creep in yesterdays session and managed to close slightly higher. This morning the price is 0.26% lower and it appears we are in the middle of the consolidation range.
On the calendar today we have the ECB economic bulletin, FOMC rate decision and statement and comments from ECB's Draghi, Coeure and Nowotny.