Disappointing US and Chinese figures pressured base metals, supported somehow at the moment from a lower USD against a basket of major currencies. Also expectations of a lower interest rates from the US in some 12 days next FOMC meeting and hopes on monetary stimulus from China to support economic growth brought also support. Copper remains steady trading within the $5,640-5,770 range. Full spread closed at $26.50 contango. Aluminium is also trading at the same levels as yesterday, between the $1,700-1,760 support-resistance channel. Cash to 3s was valued at $2.75 contango, with $10 and $13 backwardation on November and December dates respectively. Nickel touched the first support we mentioned here yesterday, and below, and is slightly bouncing back up towards the $16,500 where we could expect a new drop down towards the $15,520, 23.6% retracement and main target. The spread closed at $100 backwardation. Zinc keeps testing the $2,400 new support, and previous resistance, and having the support below at $2,380 and a target above at the $2,500 area. The spread closed at $33 back. Lead is testing a 3 top figure, and breaking through it could rise above the $2,200 level some $70. The spread rose till $21.75 backwardation from $8 back the previous day. Tin rose above the mentioned 38.2% retracement at the $16,950 level and tested the next resistance at $17,250. Now trading within the range. Cash to 3s closed at $41 contango.
Gold is trading below the $1,490 level despite the lower growth of Chinese economy and the disappointing US fundamental data released yesterday. Expectations of new interest rate cut from the US should bring support to the group. Brexit agreement between the EU and the UK, even if still needs to be confirmed by the British parliament, should release one of the main concerns on geopolitical issues. Silver remains above the $17, trading at $17.45.
Platinum is trading around the $885 level and palladium at $1,762.
Brent bounced back up, trading at $59.77 and WTI also rose some 0.17% until the $54.02 level.
The USD lost ground against the EUR, trading above the 1.11 as data show weakness in the job and industrial market, and a new rate cut could be expected, following the trend. EUR is trading at 1.1116 this morning and GBP at 1.2872 against the greenback.
Dax retraced after disappointing US data released yesterday, and is dropping also today as Chinese GDP rose less than forecasted, trading at 12,654. DJI remained unchanged, just up 0.09%, staying above the 27,000 at 27,025. Asian markets finished mixed, with Nikkei +0.18%, HSI -0.56% and SSEC -1.27%.
EU Economic Summit day 2. BOE Governor Carney Speaks at 18.45. IMF Meetings today and tomorrow. US Federal Budget Balance today.
This report was written at 9:00. All times referenced are GMT.
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