Gold and silver are trading marginally lower heading into the EU session
London (Mar 25) Once again gold and silver have moved marginally lower overnight. The yellow metal trades above $1730/oz while silver is moving around the $25/oz. In FX markets, the USD is slightly firmer and USDJPY is the biggest mover out of the major currency pairs as it trades 0.22% in the black.
It has been a mixed Asia Pac session as the Nikkei 225 (1.14%) and ASX (0.17%) closed higher but the Shanghai Composite (-0.10%) traded in the red. In the rest of the commodities complex, both copper (-0.86%) and spot WTI (-0.80%) traded soft. European futures are pointing to a negative open.
In news overnight, BoE Chief Economist Andrew Haldane said he expected a "rip roaring" economic recovery, based on "chatting" to his contacts.
There was a rumour overnight at that China's 'National Team' said to be intervening to buy stocks. Chinese stocks have underperformed recently as the government and central back pull away from stimulus measures.
On the stimulus front, BOJ Gov Kuroda says no plans to end ETF buying or sell any BOJ Holdings. The central bank owns the most Japanese stocks through the ETF purchasing program.
Bank of Korea says it'll extend special loans to small and medium-size firms by 6 months.
AstraZeneca positive primary analysis of the Phase 3 trial of its vaccine in the US was confirmed. The results showed 76% vaccine efficacy against symptomatic COVID-19, 100% efficacy against severe and critical disease, 85% efficacy for those aged 65+.
As the central bank war against cryptocurrencies rages on, Fed’s Evans says cryptocurrencies are too volatile to be a store of value. He went on to say, its extraordinary 10 yr rates are as low as they are given all the fiscal spending. Lastly, he said, the US unemployment rate to drop to 4.5% in 2021.
Sticking with Fed members, Fed's Daly says the US economy still needs support, economy a long way from goals.
US Treasury Secretary Yellen and Senator Mnuchin said they are both in favour of a corporation tax rise.
The Fortescue owner said that although the spat between China and Australia has not affected the firm at the moment he does not rule out that it might in the future.
Looking ahead to the rest of the session highlights include the SNB rate decision, US GDP, US initial jobless claims. We are also looking to hear from BoE's Bailey, ECB's Lagarde, Schnabel, de Guindos, Weidmann, Fed's Williams, Evans, Clarida, Daly, Bostic and BoC's Macklem. A very busy session for speakers.
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