Gold continues to trade below 1400.000 USD as of this morning with a value near 1376.00 as of this writing. Crude Oil has also taken a hit as commodities have declined, WTI is testing short-term lows and is below 90.00. The U.S. will release its Crude Oil Inventories data later today. Most physical resources continue to be under pressure.
The EUR continues to be strong as it finds backers while pushing towards short-term highs. The ZEW Economic Sentiment reports from Germany and the broad European numbers produced disturbing outcomes yesterday, but this did nothing to hamper the Single Currency. Germany will hold a 10-Y Bond Auction today. The recession in the E.U. continues to remain hard to defeat and the ZEW readings yesterday will not bring on any optimism. Italy is making news today via a seizure of over 1 billion EUR of assets from Banca Nomura in regard to an ongoing investigation with Monte dei Paschi di Siena. Banca Nomura is part of Nomura International which is headquartered in Japan. The probe centers on allegations of fraud including commissions that were supposedly ‘under reported’ and other accounting irregularities which the Italian government claims produced massive tax evasion from the banks.
While European bourses mostly traded lower on Tuesday, the major indexes from the States bounced back after Monday’s declines. Housing data from the U.S. was mixed yesterday with Building Permits missing their estimate, but Housing Starts were slightly better. The real estate market in the States remains a cauldron of debate. While some markets have definitely improved regarding values, other spots including Florida, Nevada, and Arizona remain quite troublesome. Part of the problem is that these three states among others have tough employment situations, meaning housing demand is weak. Tomorrow weekly Unemployment Claims will be released along with the Philly Fed Manufacturing Index reading. The data from the States continues to be a focus for those concerned about the strength of the American economy.
Monday was certainly a testing ground for trading sentiment as Chinese data showed that its economy may be feeling the effects of weakening export demand, but Tuesday’s broad market results showed some resilience. Meanwhile, the Gold slide has certainly caused many to comment and conjecture as the precious metal deals with the reality of its bear market declines since the beginning of 2013. Yesterday’s gains on Wall Street erased Monday’s loses, but investors continue to express some trepidation about weak fundamentals. Earnings will continue today with the likes of Abbot Labs, Bank of America, and Noble Corp among those reporting.