China shares were stronger overnight, with Hong Kong shares managing to breakout to a fresh two week high. Apparently investors in China were cheered by favorable US housing data yesterday and also from mostly positive corporate earnings news flow from the US Wednesday. European shares were also higher to start today but rising Spanish yields in the wake of a shorter term auction overnight, did seem to dent optimism in the Euro zone.
Apparently the world saw the bigger than expected jump in US housing starts yesterday as a positive development, but it is possible that increased talk and focus on the fiscal cliff ahead will serve the temper the quasi risk-on vibe in place at the start of the Thursday US trade.
The platinum market is showing some recovery action this morning and that is probably the result of outside market action. In other words, slightly higher global equity market action, favorable currency market action and strength in the rest of the metals complex, appears to have emboldened the bull camp.
The press has continued to circulate stories of declining South African platinum production (due to rising costs and low platinum prices) and that could be one of the factors that is responsible for the markets ability to consolidate nearby platinum prices above the $1,400 level, for the last three months. The bull camp might also suggest that platinum has managed an impressive consolidation in the face of deteriorating global economic activity.
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