Risk rally eases overnight
Yesterday there was more confirmation that the US and China mat remove tariffs slapped on one another to get the trade deal passed. This led to another bout of risk on strength. All three US bourses closed higher and over in the Asia Pac area, only the Nikkei 225 carried that strength over. The ASX and Shanghai Comp. struggled overnight. It had been said by Navarro (Economic assistant to the President) that there is no agreement set in stone to remove the tariffs and that Trump is the only one who could make that decision. This could have been the reason for the pullback in risk sentiment.
Gold once again struggled yesterday and fell 1.48% and pushed close to find support ahead of the consolidation low of $1459.23/oz. Today the yellow metal trades 0.12% higher at $1470/oz.
Copper once again printed above the $2.70/lb level only to push back lower and this morning opens up at $2.69/oz. However, the industrial metal did print a wave high of $2.72/lb.
For the fourth time spot WTI found resistance and could not hold over the $57.43/bbl area despite managing to print as high as $57.84/bbl. The key issue here is the fact that some OPEC+ members do not want another production cut. It seems to be putting a cap on gains.
Today we are on the lookout for the German trade balance, French employment numbers, Canadian jobs figures, US Michigan data and the Baker Hughes rig count.