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(Wallace Refiners) – After a dismal session yesterday gold (0.15%) is trading higher leading into the EU session. Yesterday the yellow metal fell over 1% as sentiment took a nosedive following more delays in the US fiscal stimulus and a decent initial jobless claims figure. Silver has not yet recovered and is trading lower by 0.35% adding to the 1.32% drop on Thursday.
Overnight the Asian markets took the positive lead from Wall Street. There was not too much market action from the presidential debate but Trump did say a COVID-19 vaccine will be ready in the next few weeks (but is not guaranteed). On the stimulus front, NEC director Kudlow said the issues between the White House and House Democrats are not likely to get resolved. The Nikkei 225 closed 0.18% higher, ASX -0.11% and the Shanghai Composite -1.04%.
In FX markets GBP is one of the main casualties overnight after some recent strength. GBP/JPY is trading -0.19% lower and there has been some decent JPY strength as CAD/JPY is -0.16% lower too. USD/SEK (0.37%) and USD/TRY (0.23%) are the best performers with the greenback performing well against some of the other EM currencies too.
In the metals complex, copper is trading 1% lower but platinum (0.43%) and palladium (0.48%) are both in the black. Aluminium is also struggling trading 0.60% lower but although the base metal is having a tough week it has been performing well since April.
On the agenda today, the highlights are UK retail sales, EZ, US and US flash PMI’s. Earnings come from Daimler, Barclays and American Express.
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