Silver remains under heavy pressure

Monday, September 22, 2014

Asian equity markets started the week negatively, posting heavy losses overnight. The Hang Seng index retreated sharply more than 300 points (-1.3%), while the Nikkei declined by more than 100 points (-0.7%). According to Financial Times, the minister in charge of Japan’s “Abenomics” project suggested that a second increase in consumption tax will take effect as initially planned, reporting that the extra stimulus in the Japanese economy would ensure it did not jeopardise the country’s economic recovery.

European equity markets tracked the downtrend from Asia and opened the trading session lower this morning. The DAX, CAC, IBEX and the London equity benchmark have retreated between 0.35% and 0.55% in early trading, while the euro found strong support at 1.2829 and recovered to trade around 1.2860 against the US dollar.  The release of the US Chicago Fed business index and existing home sales data for August as well as the Eurozone’s consumer confidence could provide further signs regarding the current economic conditions.

Energy: Brent front month futures remained under pressure in early trading this morning around $97.6 per barrel. The WTI front month contract has retreated sharply early in the session to retest $92 per barrel. Oil fundamentals remain quite bearish, adding serious pressure to the oil market. In addition, Chinese economic data has been fairly disappointing in recent weeks, raising renewed concerns about a slowdown in the Chinese oil demand.

Precious Metals: Gold retreated lower trading around $1210/per ounce remaining near its lowest level in 8 ½ months. Silver has been under heavy pressure in early trading this morning declining for a fourth consecutive session towards $17.50.

Silver Spot

XAG Curncy (Silver Spot  $_Oz )   2014-09-22 08-56-05

Softs: ICE cocoa futures climbed to hit a 3-1/2-year high on Friday, supported by speculative buying activity amid concerns that Ebola is likely to spread to Ivory Coast, potentially causing cocoa supply issues in the region.

Cocoa Futures Front Month

CCZ4 Comdty (COCOA FUTURE      D 2014-09-22 09-00-09

 

Events for today:

 

1330

US

Aug

Chicago Fed

1500

EZ

Sep

Consumer Confidence

1500

US

Aug

Existing Homes Sales

 

All times UK Local Time

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