Gold and silver drop ahead of the EU open
London (Oct 5) Gold and silver both start the EU session on the back foot. Gold is -0.64% in the red trading at $1758/oz while silver has dropped 1% to trade at $22.46/oz. In the rest of the commodities complex, copper is down -1% while spot WTI is trading just above flat.
In the risk markets, the Nikkei (-2.23%) and ASX (-0.41%) had another shocking session while the Hang Seng closed just under flat. Futures in Europe are pointing towards a mixed open.
In FX markets, the dollar index rose 0.22% and all of the commodities currencies struggled. NZD/USD and AUD/USD lose half a percent. Bitcoin marginally extended on its recent gains to trade at $49,332.
No change to RBA policy was announced, as expected. The RBA is to continue to purchase government securities at the rate of $4 billion a week until at least mid-February 2022. The central scenario is that the conditions for a rate rise will not be met before 2024.
CNN reports that Biden tells House progressives spending package needs to be between $1.9 tln and $2.2 tln.
Japan's finance minister Suzuki says must support struggling businesses, but also keep fiscal discipline.
Japan's economy minister Yamagiwa says wants to reveal an economic package by the end of this year.
Japan's Jibun Bank/Markit Services 47.8 and Composite 47.9 PMI (final) for September.
Australia's trade balance for August reported a surplus of 15,077m AUD (expected surplus 10,650m AUD).
Australia's ANZ job advertisements survey for September -2.8% m/m.
The New Zealand ANZ Commodity Price index for September hit +1.5% (prior -1.6%).
Japanese Tokyo CPI +0.3% y/y (vs. expected -0.4%, prior was -0.4%).
Australian weekly consumer sentiment 104.6 (previous week 103.7).
Australian Markit Services 45.5 and Composite 46.0 PMIs for September (final).
Australian AiG Construction PMI for September 53.3 (prior 38.4).
New Zealand QSBO for Q3 2021, business confidence headline -11% (vs. 7% prior).
Looking ahead to the rest of the session highlights include EU, U.K. & U.S. services and composite PMI's. There could also be comments from ECB's Lagarde.
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