Base metals finished mainly in green yesterday, supported by better than expected Chinese GDP figures, growing at 6.8% pace, with also positive Industrial production. Copper rose 0.60%, finishing close to the $7,100 level, where it has been through this morning already. Aluminium rose 2.23%, supported also by a pollution alert in the main aluminium production area in China (Zhengzhou), which is expected to accelerate the close down of production capacity. Full spread is now in a backwardation area, and finished yesterday at $2.5. Nickel rose 0.48%, following the rest of base metals trend. Zinc slightly rose 0.25%, but Cash to 3 months backwardation dropped to close at $24. Lead rose 2.46% also lifted by pollution alert in Henan province, which is expected to create at least short term disruptions. Tin was the only metal finishing in red, losing just 0.32%. This morning all metals are in green, supported by a dropping USD and still the positive effect of Chinese figures.
Gold retraced yesterday and found some support around the $1,330 level, although it broke it overnight. Seems that the metal is moving together with the USD index, as it is recovering this morning some space, as well as USD is losing again a basket of currencies. Also prices are being pressured by central bankers implying the end of ultra-low interest rates and easing policies. On the other hand the easing political tensions between both Koreas seems to erase, at least momentarily, support to the group. Silver is trading around the $17 level, without a clear direction, just following the gold trend, which seems to be trying to consolidate.
Platinum is remaining stable around the $1,000 level. Palladium also remained steady at the $1,100 level.
Oil dropped yesterday as WTI finished at $63.07, losing $0.82 the March contract and Brent losing $0.68 to finish at $68.63, in what seems to be more a technical move, waiting for more supportive news (as OPEC production cuts or a weaker USD) to retake the bullish trend.
EUR is gaining this morning what was lost yesterday, trading again at 1.2260, up 0.18%. GBP is trading mainly flat after yesterday rise now at 1.3905.
Dax rose yesterday some 0.75% trading again close to the $13,300 level. DJI retraced 0.37% but managed to close above the 26,000 level. Asian markets closed in green, achieving all-time highs, supported by Chinese positive GDP figures released yesterday, with Nikkei +0.19%, Hang Seng gaining 0.12% and Shanghai Composite +0.38%.
US Preliminary University of Michigan Consumer Sentiment and Inflation expectations at 15.00. European Current account at 09.00. UK’s Retail Sales at 09.30.
This report was written at 7:30. All times referenced are GMT.
IFCM Commodities GmbH is a tied agent of INTL FCStone Ltd. INTL FCStone Ltd, a company registered in England & Wales and a wholly owned subsidiary of INTL FCStone Inc. [NASDAQ: INTL], is authorised & regulated by the Financial Conduct Authority [FRN: 446717]. Commodity trading involves risks, and you should fully understand those risks prior to trading. This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Ltd. References to and discussions of Structured OTC products are made solely on behalf of INTL FCStone Markets LLC, a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to accuracy. The content of this document is for information purposes only and may not be taken as representation, advice, or inducement to enter into any contract, investment or arrangement. INTL FCStone Ltd fully disclaims and shall be held harmless against any liability howsoever arising, that may be incurred or suffered by any party from the reliance, use, misuse, reproduction (in part or whole) and dissemination of such information. © 2017 INTL FCStone Ltd. All Rights Reserved