Market sentiment was robust Monday as US' retail sales beat market expectation and world leaders declared to stimulus measures until economic recovery has gained a firm footing. Rallies in the commodity market were broad-based. WTI crude oil price surged +3.3% to settle at 78.9 after jumping to intra-day high of 79.43, Comex gold made a fresh record high as 1144.2 before closing the day ar 1139.2, up +2% from last Friday. Base metals also advanced with copper and lead gaining +5% to 6850 and 2390 respectively.

Stock markets were also buoyed by strong data and market optimism. In the US, Dow Jones Industrial Average climbed +1.3% to 10407, the highest level since October 2009, while the S&P 500 Index added +1.5% to 1109, also the highest in 13 months. In Europe, both UK's FTSE 100 and Germany's DAX soared more than +2% while France's CAC 40 gained +1.5%.

The dollar tumbled as the APEC summit failed to address depreciation of USD. While US President Obama said he expected to raise the issue of China's currency peg to the dollar, the Chinese government commented that it's unfair to force the RMB to appreciate using international pressure. USD weakened further after the US reported retail sales which increased +1.4% mom in October after falling -1.5% a month ago.

Fed Chairman Ben Bernanke's comment about USD did help the currency temporary but it gave up ground again later in the trading session. Bernanke said that the Fed will 'closely' monitor the currency markets and 'ensure that the dollar is strong'. However, his pledge to keep the Fed funds rate low for an 'extended period' triggered selloff again.

Today in Asia, profit-taking is seen in the commodity market. Crude oil slides to 78.6 and this is the pattern in recent weeks that price retreats after approaching/briefly breaking 80. Gold price also pulls back to 1136 but the uptrend should resume after consolidation.

Platinum retreats after surging +4% to 1144.6 Monday. However, bullishness in precious metals and signs of improved fundamentals should send price higher later. According to Lonmin, the world's third largest platinum producer, said that its refined platinum production, decreased -6% to 657 317 oz for the year ending September 2009. Ian Farmer, the company's CEO, said that demand for platinum may have 'gradual and slow improvement in 2010' followed by 'supply shortages in 2011 and 2012'.

The UK's CPI probably rose +1.4% yoy in October, after easing to +1.1% in the previous month. Decline in fuel prices, utility bills and transport costs last year and subsequent increase this year should have boosted the price level. In the US, headline PPI should have increased +0.5% mom October after contracting -0.6% in the previous month. This should have eased annual decline to -1.7% from -4.8% in September.v