Off The Wire
Gold and silver stuck heading into the EU open
(Kitco News) - Overnight once again the risk theme was tilted to the downside. Gold (-0.26%) now seems to oscillating around the $1900 level as the precious metal is moving toward the zone after hitting a high of $1910.65 in the middle of the Asian session. Silver is slightly worse off trading 0.59% lower heading into the EU session but is firmly within the current range. Stocks are subdued once again with the exception of the Chinese bourses. The Nikkei 225 has fallen 0.41% while the ASX in Australia trades half a percent lower. The Shanghai Comp. is trading just above flat 0.10% higher and Hong Kong's Hang Seng is the outperformer moving 0.77% higher.
In terms of news, once again vaccine news was negative as the WHO stated the Gilead drug Remdesivir appeared to have little or no effect on 28-day mortality rates for COVID-19 patients. This follows Johnson & Johnson and Eli Lilly pausing clinical trials due to complications. In China, it was reported that Mills are no longer buying cotton from Australian sources. This is another sign that the tension between the two nations is increasing.
In FX markets, the yen is one of the main movers overnight with AUD/JPY falling 0.34%. This pair trades relative to risk and have been falling in recent sessions to reflect the move into risk-off. This compounded the woes for the Australian dollar as EUR/AUD was the best performing cross overnight.
On the data front, today the markets look forward to EU CPI, US retail sales, US manufacturing and industrial production, the EU council summit and comments from Fed's Williams. Fortescue Metals and Honeywell are the main earnings updates.