Compiled 07/13/12 6:00 AM (CT) Statistics: London Gold Fix $1,579.00 +$13.50 LME Copper Stocks 251,675 tons +300 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Relatively speaking silver has outperformed gold on a number of occasions this week, but that doesn't appear to be the case in the early Friday US trade action. Silver is showing some minor early gains because of generally supportive outside market action, but it is also possible that a moderate portion of the gains this morning are the result of a somewhat oversold condition from yesterday's hard down action. Since the silver market hasn't paid that much attention to classic supply side developments lately, the trade probably won't see any sustained impact from news that Bolivia moved to nationalize a silver mining operation. At least to start today September silver looks to be able to draft off positive macro economic vibes and in turn benefit from minimally supportive currency market action. However, gains in US equities in the early action today weren't overly significant and therefore the level of fresh confidence toward physical commodity markets like silver probably won't be dramatic. Comex Silver Stocks were 144.429 million ounces down 35,874 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While Hong Kong shares managed a slight rise today, that market for the week was down sharply. Apparently the markets saw the Chinese growth figures to be as expected and not much worse than expected and that seemed to provide European equity markets with a modest early lift. An item that might point to increased support for the Chinese economy, might have been seen in other data Chinese released overnight, which showed government fiscal spending in June jumping by nearly 18% over year ago levels. An Italian debt auction overnight of 3 Year debt instruments showed a yield decline from the June levels and that news also contributed to a slightly upbeat global vibe this morning. Part of the benefit from the reduced Italian debt yield results overnight was countervailed by a Moody's warning of a potential downgrade of Italian debt ratings, if Italian access to debt markets becomes restricted. However, a surprise jump in UK Construction Output for May overnight seemed to provide the markets with just enough added optimism to shift the markets into a risk-on condition. On the other hand, US PPI figures are likely to contract this morning and the trade is also anticipating a minimal drop in the Michigan Consumer sentiment results. While there will be a Fed speech from Lockhart this afternoon, the markets aren't expecting to see any fresh revelations on Fed policy today.
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