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(Wallace Refiners) – Gold has moved 0.20% higher again leading into the EU session and trades at $1734.65/oz. Silver is also up but only marginally as it flirts with the $26/oz figure.
After inheriting a mixed close for Wall Street bourses in the Asia Pac area moved lower. The Shanghai Composite (-0.03%), Nikkei 225 (-0.02%) and ASX (-0.47%) all closed in the red. Futures are pointing towards a negative cash open in Europe.
In FX markets, the US dollar was up against all its major counterparts but the pound. GBP/USD moved 0.08% higher while, AUD and NZD are both more than 0.10% lower against the greenback.
In the rest of the commodities complex, copper trades 0.88% higher and spot WTI is 0.76% in the black. All markets are slightly tentative ahead of today’s FOMC meeting.
Looking at the news, the US have identified 24 China & HK officials who have reduced Hong Kong’s autonomy and warn of sanctions. There are high-level talks taking place between US and Chinese officials in Alaska this week. A US official has said (on talks with China due this week) talks will be robust, frank. lastly, US Sec State Blinken says China acting more aggressively, repressively.
US House passed a two-month PPP extension in a 415-3 vote, The PP serves to support smaller business (mainly). There is still around USD93bn left in the kitty to disburse.
In company news, Honda is suspending some production at all US and Canadian plants due to supply issues. There have been some serious semi conductor shortages at the moment but it is unclear if this is the problem.
From central banks, RBA’s Kent doesn’t think monetary policy should or can control asset prices. He added he expects a rise in business failures as fiscal support is phased out.
ECB’s Schnabel has said the EU’s EUR 750bln recovery fund may not be large enough. He added what matters now is spending money as quickly as possible.
ECB’s Kazimir believes the EU’s fiscal response is lagging behind America’s. He also said bond yields must reflect the fundamentals and the Euro-Area’s yield moves are not dramatic.
The latest International Atomic Energy Agency report shows Iran edging closer to developing a nuclear weapon. This will not please the international community who may respond with sanctions.
France’s PM says its time to think about a lockdown for the Paris area. Italy and France are now considering ending the suspension of the Oxford/AstraZeneca vaccine.
Looking ahead to the rest of the session highlights include the FOMC rate decision (statement), IEA reports, EZ CPI, Canadian CPI, DoE’s, NZ GDP, Dutch general election and comments from ECB’s Elderson and Fed’s Powell.
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