What sequestration? The markets are poised to break records today as China announces stimulus measures, Federal Reserve Vice Chairman Janet Yellen cheers QE, and Bank of England, Bank of Japan, and the European Central Bank are all expected to leave in place or increase easy money policies.
The dollar is weaker today on profit taking, and oil is firmer as a North Sea pipeline leak results in the entire Brent oilfield complex being shut down for a fourth day. This means 100,000 barrels a day of crude oil is not being produced.
In Europe, the Markit comprehensive EU PMI is down to 47.9 from 48.6, but the German PMI is at 54.7.
The weaker dollar and higher oil prices are combining with good physical buying in Asia to lend support to gold and silver. Platinum has almost given up its premium compared to gold, but news yesterday of labor unrest at another South Africa platinum mine has halted the white metal’s recent slide.
Tomorrow marks policy meetings at the Bank of England and Bank of Japan, with the ECB meeting Thursday.