Stocks rocket after Fed comments
Late yesterday evening stocks turned higher, gold rocketed and the Dollar crumbled as the Fed signalled a rate cut. John Williams (New York Fed) stated that policymakers could not wait for economic disaster to hit before adding stimulus. Overnight the Nikkei 225 gained 2%, the ASX 0.77% and the Shanghai Comp. 0.73%.
In commodities markets, gold was one of the biggest beneficiaries and hit a high of $1452.95/oz but this morning has moved 0.60% lower to trade at $1438/oz. The previous wave high was taken out so the market is looking for an area to consolidate.
Copper also shot higher and broke out of its recent consolidation zone to trade at $2.76/lb. The next resistance is up at $2.84/lb but the industrial metal is unlikely to really kick on unless decisions are made on a trade deal between China and the US.
Spot WTI is also higher this morning due to the weakness in the USD. The liquid gold trades 0.63% higher hovering near the $56/bbl handle after suffering four straight sessions of heavy losses. In other news, the US is said to have shot down an Iranian drone that was near one of its ships.
Today we will be looking out for the Baker Hughes rig count, Canadian retail sales, Michigan data and comments from Fed's Bullard and Rosengren.