The Nikkei was lower overnight in the wake of big losses on Wall Street yesterday, which in turn were the result of the Moody's downgrade. While Shanghai was closed, the Hang Seng and other Asian equity market measures were uniformly weaker off the US Thursday developments, and they were also weaker because of renewed European slowing fears. European equities were weaker this morning, with investors concerned about a softer than expected German Ifo reading, but the markets might have seen some support from an E4 meeting. The US scheduled report slate is mostly empty today, with the exception of a weekly 3rd or 4th tier economic activity index from the Economic Cycle Research Institute. Surprisingly, the US equity markets were showing early positive action in the wake of the very hard day down yesterday, and that could serve to temper deflationary/slowing vibes that were clearly in place at times on Thursday.

Surprisingly, seeing German business confidence reach a fresh two year low hasn't rekindled aggressive, broad-based deflationary selling of physical commodity markets. In the last COT positioning report, the nonreportable and non-commercial combined positioning in platinum was pegged at 18,979 contracts. Since that report was compiled, the July platinum contract has seen a decline of roughly $33 an ounce. From that we might assume that the net long in platinum has been reduced even further. Limiting platinum prices this morning are minimally adverse currency market action and overnight stories predicting rising platinum supply off increased recycling activity. Considering the macroeconomic prospects today and given the recent action on the charts, it is difficult to take control of this market away from the bear camp.