Gold is trading flat ahead of the European open
London (Jun 15) Gold is trading just above flat leading into the European open at $1866/oz. Silver is slightly worse off and has moved -0.55% lower to trade at $27.70/oz. In the rest of the commodities complex, copper has moved another 2% lower while spot WTI trades flat.
In terms of risk sentiment, the Nikkei 225 (0.96%) and ASX (0.92%) both traded well but the Shanghai Composite fell -0.90%. Most of the index futures are pointing towards a positive open but the FTSE 100 futures contract is -0.70% lower at the moment.
In the FX markets, the dollar index has moved 0.08% lower and the biggest mover overnight has been NZD/USD which gained 0.15%. BTC/USD is marginally lower trading above the psychological $40k level.
Looking at some of the main stories from overnight, China said it does not pose systemic challenges to other countries. These comments could be made following the G7 summit.
UK May jobless claims change -92.6k vs -15.1k prior. Elsewhere in the UK PM Johnson confirmed the restrictions would be lifted on the 19th July, 4 weeks later than planned.
Germany (May) final CPI printed at +2.5% vs +2.5% y/y prelim.
PBOC issues a 200bn yuan 1-year MLF at 2.95% (rate unchanged from previous).
China financial media say the PBOC might boost liquidity in the next two weeks.
U.S. Senate majority leader Schumer said the Senate would move forward with the infrastructure proposal even if it does not have bipartisan support.
The U.S. and Canada are to further discuss lifting border restrictions today, Tuesday 15 June 2021. Meanwhile, the EU looks to lift travel curbs for US travelers this week.
UK - Australia free trade deal likely to be announced in London Tuesday 15 June 2021.
In the latest RBA minutes, the board agreed it would be "premature to consider ceasing" the bond-buying programme. The options for the bond programme included another round of A$100 bln, scaling back purchases, spreading them out. The board's aim still continues to be full employment.
Looking ahead to the rest of the session highlights include U.S. retail sales, U.S. PPI, U.S. industrial production, weekly API's and comments from BoE's Bailey and ECB's Lane.
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