European equity markets rebounded in today’s session and posted strong gains, while the euro came under renewed pressure against the USD and sterling today. The CAC, DAX, IBEX and the London equity benchmark have gained between 1.2% and 1.9% at the time of writing, showing signs of upside correction after recent heavy selloffs across the global equity markets.
Base metal prices remained on the negative territory for a third consecutive session amid ongoing concerns about a slowdown of the metals demand worldwide following the modest manufacturing PMI data from the US and China. Aluminium and copper extended losses towards 2,050 and 6,620, respectively, while lead, nickel, tin and zinc came under further pressure in today’s session.
Precious metal prices plunged today with gold spot falling sharply below $1,150/ounce (over 1.7%), while silver retreated over 3% to reach a low at $15.15, at the time of writing.
Crude oil prices reversed from heavy losses and climbed higher, as the weekly EIA oil inventories report spread an optimistic tone across the market after showing a smaller than expected rise of 460,000 barrels in crude oil stocks against expectations of a 1.96 million barrels build. Gasoline inventories fell sharply by 1.37 million barrels versus analysts’ estimates of a 455,000 barrels drop, while distillate stocks also declined by 724,000 barrels. WTI front month future climbed higher to retest $78.50 per barrel while Brent front month futures also followed the uptrend heading towards $83.50 per barrel.
Tomorrow, market participants will be keeping an eye on the US Challenger layoffs and weekly jobless claims data as well as interest rates decisions from the European Central Bank and the Bank of England. In the UK, the main focus will turn to the releases of the Halifax house prices as well as industrial and manufacturing production data for September.