EMISSIONS: EU ENVI Council To Formally Adopt Climate Target on Wednesday

• MNI: EUROZONE SEP CONSTRUCTION PMI 46.0 (46.7 AUG)

Spanish industrial production fell 0.1% M/M SA in August, the second consecutive sequential decline. Only three analysts had submitted forecasts for the print, with estimates ranging from -0.2% to +0.7% M/M. Though sequential growth rates have been negative for two months now, 3m/3m and Y/Y comparisons remain in positive territory. Furthermore, signals from the manufacturing PMI suggests underlying IP momentum remains positive.

• Across sub-components, August’s M/M fall was centred in intermediate goods (-1.5% M/M) and energy (-0.7% M/M). There was a solid 2.6% increase in capital goods production, but this followed a 2.9% fall in July. Consumer goods production was +0.2% M/M, after -0.1% in July and -0.3% in June.
• Annual SA industrial production growth was 3.4% in August, up from 2.7% in July (revised up from 2.5% initial). This was the strongest Y/Y rate in over two years.

• RES 4: $49.804 - All-time high Apr 2011 and major resistance  
• RES 3: $49.444 - 3.236 proj of the Sep 4 - 16 - 17 price swing
• RES 2: $49.000 - Round number resistance 
• RES 1: $48.838 - 3.000 proj of the Sep 4 - 16 - 17 price swing     
• PRICE: $48.644 @ 08:22 BST Oct 6
• SUP 1: $45.913/44.369 - Low Oct 2 / 20-day EMA 
• SUP 2: $41.601 - 50-day EMA
• SUP 3: $40.404 - Low Sep 4   
• SUP 4: $38.087 - Low Aug 27

Trend signals in Silver remain bullish. The metal has traded to a fresh cycle high today, as the bull cycle extends. Note that moving average studies are in a bull-mode position too, reinforcing current conditions. Sights are $48.838 next, a 3.000 projection of the Sep 4 - 16 - 17 price swing. Clearance of this level would pave the way for a climb towards the $49.00 handle. Initial firm support to watch lies at $43.987, the 20-day EMA.