X-Trade Brokers - Analytics

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    More expensive commodities

    Most of the main traded commodities have extended the morning gains in the afternoon, be it precious metals or industrial ones. Crude was also seen  not letting go on 51$/bbl (WTI) despite a mixed DoE report.

    The Chinese trade data from the morning sparked large gains on the commodity markets even if some doubts are still present about the shape of this economy. Gold added 10$ to the 1250 reached by noon, while silver gained 3.5-4% on the day. All the main agri commodities also observe gains worth from 1.5 to 5% (with only cotton with smaller gains but the trend remains).

    The DoE report more less confirmed the API numbers in terms of a huge reduction in crude stocks (-3,23mb, API had -3,6) with much of it seen in Cushing. Refineries were also able to increase capacity utilization by 1% last week. But as we go into details the picture for oil market becomes less clear: EIA said fuel and gasoline demand was down some 0.2-0.23% in the last 4 weeks and the stocks of these refining products rised by a multiple of what the API report suggested. Still, after some jitters the market tries to stick to 51$/bbl.

    the US JOLTs figure is also worth mentioning as it casts new light on the labour market. The figure is for April and not the dramatic May (judging by what happened to NFP on that month) but it is hard to ignore the record high in job openings and the fourth positive surprise in a row with this release. Maybe it was not enough to make USD correct after the high losses, but at least it paused around 1.14 on EURUSD in the afternoon.

     RBNZ meeting is the only remaining key event today, but the decision will come after our coverage time.

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

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