Will they, wont they? Equities swing once again overnight
US markets rebounded slightly yesterday after capitulating earlier in the week, the best performer was the Nasdaq which rose 1.14%. It was much of the same in the Asia Pac area as the Nikkei (0.58%), ASX (0.71%) and Shanghai Comp. (2.09%) all traded higher overnight. All this positivity came as US President Trump once again sounded positive on the trade deal between the US-China. Trump said he had very good dialogue with China and insisted talks between the two had not collapsed. Overnight we also had the latest Chinese industrial production reading which came in at 5.4% vs expectations of 6.5%.
In light of all this positivity copper rose 0.66% overnight to trade at $2.73/lb. Although this is a positive move price is right at the resistance level which is seen at the consolidation low. Now it is over to the LME traders to see if the think the news is good enough to re-enter the zone once again.
Gold fell back to $1294/oz after rejecting $1303/oz yesterday. The precious metal is now under pressure as the risk sentiment shifts again.
Its interesting times in the oil market as reported attacks on Saudi oil vessels are pushing up the price of WTI and Brent. Yesterday we also had the latest API reading which produced a much larger than expected build but the market was already prepped as the OPEC report stated US stockpiles had grown.
Today we are on the lookout for the IEA monthly report, EU GDP, US retail sales, Canadian CPI, US industrial production, DoE's and comments from Fed's Quarles, Barkin and ECB's Coeure and Praet.