Commodities: Driven by global economics - TDS

According to analysts at TD Securities, with the market hyper-focused on the twists and turns associated with the ongoing trade discussions, this week is unlikely to be different, with much of the directional movement driven by sentiment on the latest trade headlines.

Key Quotes

“In addition to the trade headlines, the US GDP numbers as well as manufacturing data from the US, Europe and China will also be of importance.”

“For precious metal traders, the US-China headlines will feed through to prices via equity markets and volatility, as the loss of recent US optimism could spark a further bout of equity weakness. Meanwhile, the US economic data will also be a major driver as any sign of a slowing US economy could see the dollar weaken and support the yellow metal.”

“With global growth still in the driver's seat, this end of week's PMI prints from China will be the main focus for industrial metal traders.”

“Meanwhile, on the energy front, US inventories will be crucial following last week's bearish report, which showed builds on all fronts. While the market is increasingly concerned about demand growth, we note that rising US inventories are adding to a growing body of evidence that suggest the WTI-Brent spread will continue to widen.”