Shanghai stocks posted their 7th straight decline overnight and reportedly Chinese markets also saw very low trading volume. European equity markets were weaker again to start, as press coverage suggests that EU leaders are not finding common ground yet on a number of basic issues. With German unemployment levels rising overnight and Euro zone consumer confidence declining slightly, but falling further from very weak levels overall, the news flow from Europe is generally fostering a risk off vibe. The US scheduled report slate today will present initial claims and a revision of the 1st quarter US GDP reading. Expectations for the claims call for a minimal non distinct decline, while the GDP reading is generally expected to be mostly unchanged. Therefore the trade might not be able to glean much in the way of fresh direction on the US economy from the data flow this morning.
In addition to the same old negative news flow from Europe, other key economic regions have continued to post weak economic data and that appears to have left platinum prices under pressure again overnight. In fact, October platinum prices have forged yet another downside breakout on the charts overnight and in the process prices have reached down to the lowest level since the June 1st low. Heaped onto the mostly bearish macro economic condition is a negative platinum price forecast from a major brokerage firm, but that news was partially tempered by a somewhat favorable Indian platinum investor demand story. The failure to hold October platinum above $1,400 could be seen as a technical victory for the bear camp and could usher in a re-test and eventual slide below the May 30th low of $1,391.80. One hates to sell a market in the hole but the bears look to retain control through Friday morning when the EU summit will end more than likely without a marked change in EU rules and conditions.