Crude oil price recovers after plunging to 76. Currently trading as 77.5, the benchmark contract is boosted by economic expansion in the Eurozone and strong industrial production reading in Japan. Stocks rebound in Europe while USD retreats again.
Buying interest also emerges as gold price approaches 1100. Although price is expected to consolidate within a narrow range today, risk is to the upside as USD resumes weakness.
Others in the precious metal complex also strengthen. Silver surges to 1.73 while platinum recovers to 1364. Platinum should be able to record another week of weekly gain as driven by strong demand in China's auto market. Silver may lose on weekly basis after the strong rally in the previous week.
Natural gas rebounds to 4.4 after sinking to as low as 4.357 yesterday. The US Energy Department will probably show a +20 bcf increase in gas storage in the week ended November 6. This should have brought the record inventory level to 3808 bcf.
Eurozone's GDP grew +0.4% qoq in 3Q09 after contracting -0.2% in the prior quarter. Although the reading missed market expectation of a gain of +0.5%, it was the first expansion since 1Q08. Geographically, Germany's economy rose +0.7% qoq while France's and Italy's economies gained +0.3% and +0.6%, respectively in 3Q09. Earlier in Asia, Japan's industrial production was revised up to +2.1% mom (preliminary: +1.4%) in September. This narrowed annual contraction of -18.4%.
University of Michigan will report preliminary confidence reading for November, the market expects it to improve modestly to 71 from 70.6 in October. However, this should not help the dollar much.
USD's recovery loses steam and pulls back against major currencies. The dollar index falls for the first time in 3 days as the 16-nation Eurozone technically stepped from recession. USD slips to 1.488 and 1.668 against the euro and the pound respectively.