Market Recap - Stocks Are Looking Up Ahead Of Earnings Season
Wall St. and the Nikkei shrugged of European political woes and traded in the black yesterday. The Nikkei 225 traded higher by 0.77% helped by a weaker JPY. The ASX (-0.44%) and Shanghai Comp. (-0.31%) both traded in the red. The market is looking forward to this earning season which starts this week, as many major investment banks upped their forecasts by as much as 4%.
On the balance, commodities traded negative overnight. Base metals have mostly performed well except for the main indicator, copper. Nickel, Tin and aluminium all trade in the black, while zinc and copper retreated. Copper rejected the $2.85/lb area overnight, however, in general, it looks like the market may be trying to find a base.
Gold also fell overnight as risk sentiment entered back into the markets and USDCNY lost it bearish momentum. Importantly, the precious metal trades above the $1250/oz handle, however, the level to keep an eye on is $1265.90/oz the rejection point from yesterday.
There seems to be no stopping WTI at the moment as it trades 0.34% higher overnight. Today we get the release of the API inventory data and it will be interesting to see if another draw is produced after last weeks decline of 4,500mln....