GOLD: Another Fresh All-Time High
Oct-17 08:55
Gold registered another fresh all-time high at $4,379.9/oz in Asia hours, before fading back below $4,350/oz as the USD stabilised.
- Pullbacks remain shallow at this stage, with risks to the strong bullish trend all seemingly linked to worries surrounding momentum and the scale of the recent rally, as opposed to any purer fundamental risks.
- Fresh upside would target round number resistance at $4,400/oz, which protects projection resistance ($4,404.9/oz & $4,443.8/oz).
- Familiar arguments continue to drive gold demand, namely buying from both official accounts and ETFs, questions surrounding Fed independence, ongoing global trade frictions, broader geopolitical risk, bearish views surrounding the USD and expectations for further Fed easing.
- Westpac note that they remain “bullish here as the onslaught of risks likely continue to see a haven substitution. $4,400/oz seems a feasible target over the next month, however we see no hard and fast upper limit given we are trading at unprecedented levels”.
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BONDS: Firmer As Equities Weaken, Major Contract Initial Resistance Untouched
Sep-17 08:49
Core global FI markets firm on the back of the FT story suggesting that “China tells its tech companies to stop buying all of Nvidia’s AI chips”, with bull flattening seen on those curves.
- TY, Bund & gilt futures break yesterday’s highs, but do not force tests of our technical analyst’s initial resistance levels.
EQUITIES: Lower On Suggestion China Pushes Tech Cos To Cease Nvidia Chip Buying
Sep-17 08:44
E-minis offered after as an FT sources report notes that "China’s internet regulator has told the country’s biggest technology companies to stop buying all of Nvidia’s artificial intelligence chips and terminate their existing orders, as Beijing steps up efforts to boost its homegrown semiconductor industry and compete with the US".
- S&P 500 e-minis through yesterday's low, breaking 6,660. Initial support comes in at the 20-day EMA (6,559.62).
- Nvidia shares now indicated 1.1% lower pre-market.
- Prior reporting had suggested that Chinese firms were not satisfied with the Nvidia chip offering available to them, while Chinese regulatory scrutiny of Nvidia has stepped up in recent days.
FED FUNDS FUTURES: FFF6/G6 Lifted
Sep-17 08:29
FFF6/G6 paper paid -12.0 on ~3.9K.
