Commodities: Taking cues from global economic data - TDS

Analysts at TD Securities suggest that there is plenty of economic data across the globe to pique the interest of commodities investors this week.

Key Quotes

“In the US, the latest inflation, retail sales and manufacturing data will be the key points, while in Europe the GDP, employment, CPI, industrial production and auto sales data are all on the calendar. Furthermore, industrial production, retail sales, along with financing and fixed asset data will be released in China as well.”

“On the precious metals side, with the FOMC and the Midterm risk events passed, the focus seems to be firmly on the US dollar, which is making new highs. Indeed, after the FOMC committee did not sound a worried tone with regards to equity markets, the market was forced to re-evaluate the implied strike level of the so called "Powell-Put", which prompted a hawkish reaction in the USD. As such, for gold markets, the data across the globe will all have a say in price action given the linkages to the dollar. In addition, European new car registrations could be a point of interest for PGMs.”

“Base metals have continued to succumb to pressure as the market becomes increasingly worried about Chinese growth as trade angst adds to deleveraging worries. Property investment and financing data will be in focus, although consensus estimates do not suggest any fireworks.”

“As for energy markets, geopolitics will likely take be in the limelight as talks of potential OPEC production cuts are offset by Trump tweets. That being said, OPEC's monthly report will join the DOE's weekly inventory data and provide further insight into physical market trends.”