Market Recap - Gold and Oil soar and Asian equities trade mixed
Once again US equities closed on a positive note with the Nasdaq outperforming closing 0.87% higher. In the Asia Pac area the major bourses traded mixed as the Nikkei 225 closed 1.36% lower, the Shanghai Comp. was also subdued and closed 0.36% down, while, the ASX rose 0.29%. Overnight we had some trade headlines where the US stated that progress had been made but there are some major hurdles. This is not the only problem in the US at the moment as the US government shutdown continues. Apparently last night the President threw his toys out of his pram and walked out of talks with the Democrats over the proposed wall.
In the commodities market, WTI was the outperformer once again rising almost 5%. The move came as Saudi Energy Minister Al Falih hit the news wires saying that the Saudi's will do whatever is needed to prop up the oil markets. We also had the DoE oil inventories late in the session yesterday where there was a draw in inventory levels (-1.689mln) but not as much as expected (-2.400mln).
For a third straight morning, copper prices opened higher. Now price trades at $2.65/lb as the weaker USD and positive rhetoric from the US-China trade talks boosts the industrial metal.
Gold had a good session overnight after the FOMC confirmed the dovish stance in the FOMC minutes. It was said that not all FOMC delegates favoured a hike at the Dec meeting and moving forward they will consider market conditions before making a move as they can afford to be patient.
Today the ECB published the latest minutes from the last ECB meeting, we also get the US trade balance, US initial jobless claims, US new home sales, Powell speaks along with Barkin, Clarida, Bullard and ECB's de Galhau.