Risk sentiment improves overnight as equity markets trade higher

Published date: 12/08/2019

Equities markets kick off the week on the front foot as the Nikkei 225 (0.44%), ASX (0.09%) and Shanghai Comp. (1.27%) all trader higher overnight. People's Bank of China (PBOC) set its daily midpoint for yuan trading at 7.0211 per dollar this is seen to be more conservative however still above the 7.00 level.

In commodities markets, the risk-on sentiment sent gold sliding slightly and the precious metal has just dipped below the $1492/oz level. Like its correlated counterpart silver has also stopped at a major level and dipped under $17/oz.

Copper markets lacked a major catalyst for direction overnight although interestingly Rio Tinto moved a step closer to opening a new projected in Arizona that is said to be able to supply 1/4 of all US demand.

WTI pushed higher overnight after traders continue to rally markets following Friday's moves. This week we get the latest OPEC monthly report and it will be interesting to get the latest figures.

Today we are looking forward to hearing from RBA's Kent and we will also see if the Italian senate set a date for the no-confidence vote.


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