Crude oil remains weak in European morning as there's lack of upbeat economic data to offset the bearish inventory report. Currently trading at 68.5, the benchmark contract for crude oil stays within recent trading range of 65-75. We anticipate range trading will continue for some time.

Stock market performance was mixed today. In Asia, the MSCI Asia Pacific Index gained +0.3%, mainly driven by the +1.7% increase in Japan's Nikkei 225 Stock Average. However, indices for Australia, China, Hong Kong, Singapore, Taiwan and South Korea also finished lower in the day mainly due to declines in commodity and finance companies. In Europe, all of FTSE 100, DAX and CAC 40 indices open lower and has slid more than -0.2% so far.

Fresh news about trade protectionism issue between China and US may delay economic recovery. Only a week after US' imposition of tariff of tires imported from China, a labor union and 3 paper companies filed complaint that China, as well as Indonesia, are subsidizing exports of some types of coated paper. This great affects paper industry in the US.

Economic data released in Europe were largely inline with expectation. Germany's Ifo business confidence rose to 91.3 in September, the highest level in a year, from 90.5 in the previous month. In the UK, speculations that the BOE will reduce deposit rate for bank reserves re-emerge and British pound plunges sharply against USD and EUR. The Daily Telegraph said that policymakers may meet next Tuesday to discuss about decline in Sterling and QE.

Other than the pound, USD remained weak against major currencies. It retreats against the euro after meeting resistance at 1.4675/80. Against Australian dollar, the greenback also slides as RBA said that 'the Australian financial system has, throughout the crisis period, remained resilient. In aggregate, the Australian banks have experienced only a modest decline in profitability'.

Gold price rebounds to 1015 after dropping to 1008.1 early the day. According to UBS' calculations, the greatest open interest for October gold is at $1000/oz strike while 950 and 1050 strikes also has very large open interests. Given the largest open interest at 1000, it's likely for gold price to stay around that level today.