Market Recap - Trump Dampens The Mood Once Again

Published date: 11/07/2018
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Stocks in the US moved up slightly ahead of earnings, although in the Asia Pac area equities moved lower, as Trump threatened to impose another set of tariffs. This time the US president may look to add another $200 bln worth of tariffs to Chinese goods and this is now one of the key risks to global growth.

As expected, major commodities prices traded in the red and base metals suffered the most. Zinc, lead and copper are all down over 3.50% and copper has now broken another key support level at $2.75/lb.

Spot WTI was also weaker overnight, however, is still resistant compared to the base metals as it only fell 0.67%. Although, late in the session there was a draw in the latest API inventories of 6.796mln vs prev -4.500mln.

Gold and silver are also weaker overnight, gold still seems to ignore the risk correlations and is following USD/CNY price action. It must only be a matter of time before the global risk environment catches up with price action. 

 

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