Following yesterday’s sharp sell-off across global equity and commodity markets, there was a more optimistic tone in today’s trading session. European equity markets rebounded strongly and climbed higher in correction with the DAX, CAC, IBEX and London equity benchmark indices gaining between 0.2% and 2.5%. The Dow Jones index also posted fresh gains and rose towards 17,750 while the S&P 500 and NASDAQ also edged higher.
However, the US dollar continues its strong upside momentum as the USD index rallied above 99.50 today adding some pressure to crude oil and base metal prices. Copper extended declines towards $5740 while nickel, lead, tin and zinc remained in negative territory. Aluminium bucked the downtrend and edged higher towards $1770.
The DOE crude oil inventories report was fairly bearish today after showing a large build of 4.5 million barrels in crude oil stocks, a rise of 2.5 million barrels in distillate stocks and a small drop of 187,000 barrels in gasoline inventories. Thus, crude stocks continue to build up for a ninth consecutive week adding pressure to WTI front month futures which slid lower towards $47/barrel.