Compiled 10/18/11 6:00 AM (CT) Statistics: London Gold Fix $1,658.00 -$31.00 LME Copper Stocks 451,925 tons +275 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At least to start the trade today there is renewed concern toward the Euro and there is also a distinct fear of slowing in the Euro zone. In fact, noted slowing in the Euro zone and a possible Greek stand against giving away some sovereign control of their government, has seemingly reduced expectations for a solution in this weekend's European meetings. At least over the last 24 hours, the silver trade didn't seem to be overly interested in talk from some US Fed members, who suggested that the US might want to accept some increased near term inflationary threats, in an effort to head off a fresh wave of slowing. Perhaps silver was at least partially undermined by press talk overnight of rising silver supplies in India, but the silver trade in general seems to be tracking big picture macro economic developments, instead of internal classic silver market fundamentals. In short, the silver market looks to track the action in equities and in general follow the lead of the gold market. The bulls want and need to see positive US economic readings and perhaps the silver bulls also need to see PPI readings meet expectations just to keep deflation fears from gaining credence again. Many traders think the September lows in silver, represented recession pricing and in the early morning action today, December silver was still as much as $5.00 an ounce above the September lows. Comex Silver Stocks were 105.807 million ounces down 631,068 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally weaker during overnight trading, early indications are that US equity markets will open close to unchanged levels later on today. The US Dollar is generally stronger against most of the major currencies, although posting a small loss versus the Yen. A senior advisor to the Chinese government stated that China could run a trade deficit next year, if there is a severe decline in exports due to a weak global economy. A major credit ratings agency warned that they may place France on a negative credit outlook. Chinese GDP during the third quarter was up 9.1% year-on-year, slightly lower than expected. Chinese Retail Sales during September were up 17.7% year-on-year, higher than market projections. Chinese Industrial Output during September was up 13.8% year-on-year, higher than forecasts. UK CPI during September was up 5.2% year-on-year, higher than expectations. A private survey of German economic sentiment during October was -48.3, weaker than forecasts. Major US economic numbers to be released this morning include the September Producer Price Index at 7:30 AM, a private survey of the US Housing market during October at 9:00 AM, and private surveys of store sales released during the session. Fed Chairman Bernanke will give a speech during the session, and Fed Regional President Lockhart will give a speech after the close.
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