Mixed start for equities ahead of the EU session
Last night US indices closed mixed after a good start, it was all going soo well until Trump stated that the only reason trade talks as stalling is due to the Chinese. Equities markets seem to be overreacting to headlines which we have heard before or maybe its the algos. In the Asia Pac area, the main bourses were also mixed as the Nikkei 225 (0.20%) and Shanghai Comp. (0.43%) closed higher but the ASX dropped 0.29%. as traders await some key Chinese data.
Yesterday, after starting the session so well gold reversed those gains and closed 1% lower and now hovers near the $1400/oz level once again. This comes despite continued weakness in the USD but it seems a rebound in yields could be the catalyst.
Copper now looks like it's stuck between a rock and a hard place as the headlines are confusing traders. The price of copper bearly moved during the Asian session this is said to be due to a big Chinese copper player reporting during the EU session so keep a close eye on the industrial metal today.
WTI continues to move higher following the drawdown in both DoE's and API's. The spot contract still trades above the $60/bbl market with the next resistance hanging at $60.77/bbl. There has also been a 1mln drop in production levels by the Gulf of Mexico due to a major storm.
Today we are on the lookout for Chinese trade balance data, EU industrial production, US PPI, the Baker Hughes rig count and comments from BoE's Vileghe and Fed's Evans,