News Bites
Gold and silver bounce higher leading into the first EU trading day of the month
(Kitco News) - Gold (1.38%) and silver (1.44%) have bounced quite nicely this morning on the first trading day of the month. This is welcome news after a dismal end to February where the yellow metal lost 6.18% of its value.
Risk sentiment has also been positive in the Asia Pac area as the Nikkei 225 (2.41%), Shanghai Composite (1.21%) and ASX (1.74%) all closed higher overnight.
In FX markets, this inevitably means the greenback is lower (DXY -0.15%) and AUD is the best performer overnight with AUD/USD rising 0.80% to hit 0.7777. Both copper (1.37%) and spot WTI have had good sessions with the latter rising 1.76%.
The RBA doubled the size of its bond-buying today and may continue to be more active. It may now be up to other central banks to act as it seems a new type of currency war is emerging.
On the COVID-19 front, New Zealand as Auckland plunges back into lockdown. Elsewhere, in Italy restrictions were tightened in Turin and Milan over the weekend. On the bright side, the Johnson & Johnson Covid-19 vaccine gets vaccine advisory panel approval from the FDA.
China's industry minister Xiao Yaqing suggested the country's rare earths may be priced too low and are being produced as too great volume. From time-to-time, China threatens to reduce/withhold the supply of the minerals.
China - Caixin/Markit Manufacturing PMI for February: 50.9 (expected 51.4, prior 51.5). Japanese Markit Manufacturing PMI (final) for February 51.4.
Biden has requested that the Senate should quickly pass the $1.9 trillion stimulus package after it cruised through the House. He said "It's time to act,", noting that an "overwhelming" percentage of Americans support the bill. He then added, "We have no time to wasted".
In the UK Chancellor Rishi Sunak said he may need to raise taxed in order to plug the £43bln black hole in UK finances.
Looking ahead to the rest of the session highlights include manufacturing PMI's from the major nations. German CPI's and comments from ECB's Largarde, de Guindos, Fed's Harker and Williams and German Buba Vice President Buch.