Crude oil prices plunged with the front-month WTI contract falling, for the first time in 4 days, to 90 before settling at 90.2, down -3.19%, while the equivalent Brent crude contract fluctuating with the recent range of 108-112 and ending the day at 108.91, down -1.81%. Gold price strengthened for 4 consecutive days, signaling safe-haven remained despite bullish sentiment towards the EU summit.
As European leaders gathered to discuss about ways to resolve the debt problems, French President Nicolas Sarkozy said the EFSF fund will be worth 1 trillion euro after leverage by 4-5 times. The haircut on Greek debt will be increased to 50%. Sarkozy also said policymakers will discuss with Chinese President Hu Jintao today regarding setting up an investment vehicle with which China can contribute to fighting the crisis in the Eurozone.
In Asian session, the RBNZ left the OCR at 2.5% in October, citing downsides risks on global and domestic economic outlooks as driven by the European sovereign debt crisis. Policymakers worried that the country's commodity export prices will be hurt and funding cost will increase over the coming year. Yet, the central bank maintained the tightening bias that 'gradually increasing pressure on domestic resources will require future OCR increases'.
Concerning macroeconomic data for today, US' initial jobless claims probably dipped -3K to 400K in the week ended October 22. Pending home sales should have climbed +0.1% m/m in September, following a -1.2% drop a month ago. Eurozone's economic confidence probably fell to 93.8 in October from 95 a month ago. Industrial confidence might have dropped to -7 from -5.9 in September while services confidence slipped to -1 from 0.