Gold is slightly higher leading into the European open
(Kitco News) - Once again gold and sliver trade marginally higher heading into the EU open. The yellow metal is 0.23% in the black while its compatriot has just managed a modest 0.01% gain respectively.
There was some interesting news from China overnight. A senior China party official stated that complete decoupling between China and US is unrealistic. So despite all of the recent tensions, it seems China feels the two economic superpowers need to be connected. Sticking with the US, Apple, Twitter, Facebook and Amazon all reported after the US close yesterday. Only Twitter has a big negative reaction falling heavily in the aftermarket auction. Apple beat on all major metrics but analysts and traders seem to disappointed with Q4 china sales which fell 29%.
In the UK the UK Prime Minister Boris Johnson is said to be under pressure to put the county back into lockdown. Case numbers are rising along with the death rate. The R number which is closely tracked is now above the pivotal 2 level. Local lockdowns have been the philosophy soo far but it seems too early to see if they are effective.
It looks like the markets are on risk-off mode leading into the EU session. The Nikkei 225 (-1.52%) and ASX (-0.55%) are both trading lower and the Shanghai Composite has also dipped just over 1.50%. FX markets are broadly flat but the commodities currencies continue to move lower as CAD and NZD are both falling against the greenback.
Looking ahead to today's session there are lots more earnings most notably Glencore. Some of the big oil names like Exxon and Chevron report in the US session. Before that Amundi and Swiss RE are set to provide their latest update in Europe On the data front, highlights include German GDP, US PCE, German employment numbers and Chicago PMI. We will also be looking out for comments from ECB's de Guindos.