Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Wallace Refiners) – After rebounding last week gold is yet to trade above the $1848.84 resistance area but is trading 0.18% higher overnight. Silver on the other hand is not looking so positive and trades 0.18% in the red on the first trading day of the week. Overall risk sentiment has been very mixed. The Nikkei 225 is 0.73% lower, the Shanghai Composite is down just over half a percent but the ASX in Australia is trading 0.62% in the black. This all comes despite some positive news on the stimulus front as Trump and McConnel are expected to back the latest relief bill said to be worth around $908 billion.
In terms of news, the Asian session has been pretty quiet. The BoJ, however, has taken over the mantle as the worlds largest holder of stocks from the mammouth pension fund GPIF. The Japanese central bank now holds ¥44.8 trillion worth of company assets due to the QE to infinity policy it has adopted.
On the Brexit front, there has been a report that stated that Merkel and Macron to soften level playing field demands. The Brexit saga has now come down to the wire as if a deal is not close by the end of the month the UK will have to trade with its largest trading partner on WTO terms.
There was some data overnight from China. The trade data showed that exports are recovering well after the massive hit the economy took from the COVID-19 pandemic but imports remain sluggish. Exports year on year hit 21.1% vs expected 12% and imports printed at 4.5% vs the analyst consensus of 6.1%.
In commodities markets, most of the majors are in the red but zinc and nickel remain half a percent in the black. Tin (0.29%) and platinum (0.08%) are also keeping their heads above water but copper is 0.34% lower.
Looking ahead to the rest of the session highlights include German industrial production, Canadian Ivey PMI and Japanese GDP.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.