Gold and silver are trading near Friday’s levels in New York today, while platinum and especially palladium are weaker. This may be to easing supply concerns, as gold mine strikes in South Africa end, and provide a template for the settlement on labor negotiations in the PGM sector.
News of improved exports and imports in China, up 7.2% and 7% respectively, lifted global stock markets. Consumer inflation in China was reported at 2.6%, in line with expectations. This news sent the Shanghai stock exchange to its biggest one-day gain in 9 months, rising 3.39%. The Hang Seng in Hong Kong rose a modest 0.57%.
The International Olympic Committee’s award of the 2020 Games to Japan combined with a revision of second quarter GDP sharply upward to send the Nikkei up 2.48% to a five-week high.
European shares saw a boost from Chinese economic data, but the rally was quashed by worries over the Syria situation. Many European companies have substantial exposure in the region.
U.S. stocks opened higher on the China news, while Treasury yields dropped slightly on short covering and a little safe haven demand over Syria. President Obama was failed to rallies allies at last weekend’s G20 economic summit of world leaders. This reduced expectations of a unilateral U.S. strike against Syria, or reduced the expected size of an attack should it occur. As a result, oil and the dollar saw weakening.
Of course, as next week’s FOMC meeting gets ever-closer, traders will be more and more unwilling to stick their necks out on any big moves.