Gold and platinum edge higher

Tuesday, June 10, 2014

China’s CPI increased by 2.5% in May compared to a 1.8% rise in April, accelerating to its fastest pace in four months. However, factory price deflation eased showing signs of stabilisation of the Chinese economy. Please note that inflation remained within the government’s targets suggesting plenty of room for further stimulus if needed. The Hang Seng Index surged more than 200 points (+0.9%) following the inflation figures. On the other hand, the Nikkei gave back yesterday’s gains and slid lower by 0.8% to breach below 15,000, while JPY slid lower towards 102.00.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-06-10 08-37-48

 

The US equity markets edged higher yesterday and ended in positive territory. The USD index consolidated around 80.5 looking for further direction. According to Federal Reserve official, James Bullard, the US macro-economy has been much closer to a normal state than it was five years ago, adding that fairly weak labour markets and low inflation are what is keeping accommodative monetary policy in place.

In the UK, BRC Retail Sales increased by 0.5% in May missing analysts’ expectations of a 1.6% rise. Sterling edged higher above 1.68 in early trading this morning. The release of the UK industrial and manufacturing production could provide further momentum to the market.

GBP Spot

GBP Curncy (British Pound Spot )  2014-06-10 08-36-57

 

Gold climbed higher, trading above $1255 per ounce. Platinum has also extended its winning streak to a fifth consecutive trading session as talks to resolve a five-month long strike in South Africa failed to come to a positive conclusion, with the mining minister quitting his role as a mediator.

Platinum Spot

XPT Curncy (Platinum Spot  $_Oz ) 2014-06-10 08-38-07

Energy: Brent front month futures climbed above $110 per barrel yesterday, showing their biggest daily percentage gain in nearly two months, ahead of the crucial OPEC meeting starting tomorrow in Vienna. Crude oil prices have been supported recently by increasing oil demand from the US and China, while the high levels of the US oil inventories limit any possible sharp gains.

Brent Front Month Futures

CON4 Comdty (BRENT CRUDE FUTR  J 2014-06-10 08-38-39

 

Events for today:

 

0001

UK

May

BRC Retail Sales

0245

CN

May

CPI & PPI

0930

UK

Apr

Industrial Output

1500

UK

May

NIESR GDP Estimate

 

All times UK Local Time

 

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