Base metals hold on to yesterday’s strong gains

The base metals rallied robustly yesterday, rising an average of 1.6 percent, led by a 3.1 percent gain in lead prices, copper climbed 2.3 percent to $4,772, zinc was up two percent, with nickel the only metal to buck the trend with a 0.3 percent decline to $9,870. Precious metals were little changed with gold prices up 0.2 percent at $1,322.70, silver was up 0.3 percent, while the PGMs were little changed.

This morning the base metals are holding on to yesterday’s gains, prices are up an average of 0.3 percent, with copper up 0.2 percent at $4,781, but volume is light at 3,642 lots, this not surprising given China is closed today and tomorrow. Precious metals are mixed, palladium is up 0.6 percent, platinum is unchanged, while gold and silver prices are easier with gold at $1,319.70.

Equities were unchanged to weaker yesterday with the Euro Stoxx 50 unchanged while the Dow closed off 0.2 percent. Asia is mixed with the Nikkei off 1.3 percent, Hong Kong is up 1.2 percent, the ASX 200 is up 0.2 percent and the Kospi is up 0.4 percent.

In FX, the dollar is firmer with the dollar index at 95.53, the euro is weaker at 1.1222, as is sterling at 1.3218, the yen is flat at 102.44 and the aussie is weaker at 0.7450. The yuan is flat at 6.6765, most of the other emerging market currencies we follow are flat, although the real and ringgit are weaker.

The economic agenda is busy with UK retail sales, EU CPI, EU trade balance, the Bank of England rate decision, asset purchase facility and monetary policy summary. US data includes retail sales, PPI, Philly Fed manufacturing index, initial jobless claims, the current account, Empire State manufacturing, industrial production, business inventories and capacity utilisation.   

The base metals rallied strongly yesterday in a show of strength that reversed the weaker trends of late, the exception was nickel that failed to follow, although prices did hold above the late-August lows. We wait to see if yesterday’s moves now prompt short-covering. 

Gold prices continue to consolidate above recent lows, but below the 20 day moving average, silver is following gold’s lead, but the PGMs are weaker and platinum is looking vulnerable as the up trend line has been breached. 

Overnight Performance
BST	08:10	+/-	+/- %	Lots
Cu	4781	9	0.2%	1478
Al	1591.5	5.5	0.3%	1022
Ni	9910	40	0.4%	342
Zn	2276.5	1	0.0%	502
Pb	1952.5	2	0.1%	270
Sn	19320	140	0.7%	28
	Average		0.3%	3,642
Gold	1319.72	-2.98	-0.2%
Silver	18.925	-0.02	-0.1%
Platinum	1032.5	-0.5	0.0%
Palladium	654.9	3.9	0.6%
	Average PM		0.1%

 

Economic Agenda
BST	Country	Data	Actual	Expected	Previous
All Day	China	Bank Holiday
9:30am	UK	Retail Sales m/m		-0.4%	1.4%
10:00am	EU	Final CPI y/y		0.2%	0.2%
10:00am	EU	Final Core CPI y/y		0.8%	0.8%
10:00am	EU	Trade Balance		22.1B	23.4B
Tentative	Spain	Spanish 10-y Bond Auction			1.10|2.1
12:00pm	UK	MPC Official Bank Rate Votes		0-0-9	0-9-0
12:00pm	UK	Monetary Policy Summary
12:00pm	UK	Official Bank Rate		0.3%	0.3%
12:00pm	UK	Asset Purchase Facility		435B	435B
12:00pm	UK	MPC Asset Purchase Facility Votes		0-0-9	6-0-3
1:30pm	US	Core Retail Sales m/m		0.3%	-0.3%
1:30pm	US	PPI m/m		0.1%	-0.4%
1:30pm	US	Philly Fed Manufacturing Index		1.1	2
1:30pm	US	Retail Sales m/m		-0.1%	0.0%
1:30pm	US	Unemployment Claims		262K	259K
1:30pm	US	Core PPI m/m		0.1%	-0.3%
1:30pm	US	Current Account		-120B	-125B
1:30pm	US	Empire State Manufacturing Index		–             0.9	–               4.2
2:15pm	US	Capacity Utilization Rate		75.8%	75.9%
2:15pm	US	Industrial Production m/m		-0.2%	0.7%
3:00pm	US	Business Inventories m/m		0.1%	0.2%
3:30pm	US	Natural Gas Storage		57B	36B

The post Base metals hold on to yesterday’s strong gains appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2cKA6QD
via IFTTT