Crude oil price trades with a mildly bearish tone today after volatile trading Monday. The benchmark contract (January) edges lower towards 77 ahead of US GDP data and FOMC minutes.
Gold price rebounds after dropping below 1160 earlier today amid speculations on further central bank buying. The IMF said it plans to complete the sales of 403 metric tons of gold as soon as possible. After purchases from India and Mauritius, there is news saying Russia and Sri Lanka may be buying. Silver price continues to retreat after surging to 18.935, the highest level in more than 16 months.The dollar pares losses amid increased risk aversion.
In Asian session, investors stayed away from risky assets as the China Banking Regulatory Commission told banks that plans are needed to replenish capitals after the countries' new loans surged to a record high in the first 9 months in 2009. The regulator said that those banks with 'relatively low' capital adequacy ratios will face restrictions.
In Japan, finance minister Hirohisa Fujii indicated today that the BOJ needs to expand the monetary policy to combat deflation. According to Fujii, 'monetary policy plays a significant role to combat deflation'. Last Friday, the government declared that the nation is in a 'mild deflation' and the economy is in 'a difficult situation'.
Stock market declined in Asia with the MSCI Asian Pacific index sliding -1%. Japan's Nikkei 225 Stock Average lost -1% while China's Shanghai Composite Index plummeted -3.5% as led by the banking sector.
The preliminary 3Q09 GDP in the US was probably revised down to +2.6% qoq from +3.5% as previously projected as decline in inventories and lower investment reduced growth. Case Shiller Home price is expected to plunged -9.2% yoy in September, a rate that showed further moderation of price drop from -11.3% in the previous month.