Stocks were mixed in China with Hong Kong stocks forging minor gains and the Shanghai Composite falling slightly on the lowest volume in 4 1/2 months. European equities were also weaker this morning, with hope of additional easing from the US later today serving to provide some form of cushion for prices. The European markets might have seen some support from rather dovish talk from the BOE MPC, which voted 5 to 4 to leave stimulus in place but unchanged and ultimately that seems to more of an on-hold than a fresh easing stance. With some MPC officials indicating they wanted to see how events in the Euro zone play out, it is possible that the US Fed could be in a similar position. At a minimum, the markets might need to see operation twist in excess of $200 billion, just to avoid disappointment in the wake of the FOMC statement and press conference later today.

The July platinum market enters the Wednesday US trade sitting roughly $100 an ounce above the May lows and therefore it would seem like some form of US easing is factored into prices. Platinum has seen some platinum related equities down-graded this week and that might give the bear camp some encouragement. While platinum prices have periodically benefited from a precious metals/safe haven status, it has also tended to favor its industrial/physical status and that could mean platinum will continue to take some direction from equities, copper and energy prices. Extremely critical support in July platinum is seen this morning just under the initial trade at a quasi double bottom low of $1,478. We see the prospect of a spike down trade to $1,466 and perhaps even down to $1,445, unless the Fed shows it is willing to take more action than most other central banks.