Your morning market update finally has some good news for gold fans.
– Another down swing for global equities overnight but the release of the Fed’s Beige Book seems to have lifted US markets off their lows. The Fed said that the economy continued to expand at a “modest to moderate pace” – you can read more right here.
– At the close, the Dow Jones is in recovery still and down 0.1% to 15,890.7, the Nasdaq is also down 0.1% to 4,042.9 and the S&P 500 is off 2.2 points to 1,792.8. Earlier in the night new home sales were stronger than expected in October but the ISM non-manufacturing PMI printed 53.9 versus 55 expected.
– Across the Atlantic, the FTSE fell 0.34% to 6,510, the DAX dropped 0.89%, the CAC fell 0.56% while stocks in Madrid and Milan fell 0.29% and 0.67% respectively.
– On overnight trade on the ASX, the SPI 200 December contract fell 11 points after yesterday’s fairly strong rally. The high in overnight trade was 5285 but the market sits at 5281 bid, up four points after a late rally this morning. On the bond boards, the 3-year contract fell 3 points while the 10-year fell 4 points reflecting a general move higher in bond rates across the world overnight. US 10’s were 5 points higher at 2.84%, Bunds rose 8 points to 1.81% and Gilts were also up 0.8% to 2.73%.
– On Global FX markets, the Aussie dollar got poleaxed yesterday by the miss on GDP, dropping below 89 cents briefly before recovering a little to 0.9024 this morning. Euro is back near 1.36 at 1.3593 but it and GBP are hardly moved on the day, with sterling at 1.6382. USDJPY is down again off a high of 102.83 at 102.10.
– A positive night on commodity markets with some solid gains in the comms we are watching closely. Gold rocketed higher overnight, up more than $20 oz – perhaps it’s all the Bitcoin buyers converting to the “real” stuff. This morning Gold sits at $1,246 for a rise of 2.03%. Silver has rallied as well 3.83% to sit at $19.74 oz while Copper surged a massive 6 cents a pound or 1.81% to $3.26 lb. Nymex crude was also higher, rising 1.05% to $97.05 Bbl after there was a huge draw on inventories relative to market expectations. Over in the Ags, Pit Corn was up 0.83%, Wheat fell 0.99% and Soybeans rose 0.74%.
– Some interesting news from the world of Bitcoin. The virtual currency on the site I watch it on has split it into thousandths of a Bitcoin for pricing. It doesn’t change the price, but it makes it much more accessible. Anyway, a full Bitcoin is sitting at $1220 this morning.
On the data front over the next 24 hours we see South Korean GDP, Australian trade data and then tonight there is a Bank Of England interest rate decision which is a 5-star event for markets together with the ECB’s decision, statement and press conference. In the US, the release of Q3 GDP will be closely watched, as will jobless claims and personal consumption expenditures.