EUROPEAN INFLATION: HICP broadly in line with consensus: The breakdown

A bear cycle in WTI futures remains intact and the latest recovery appears corrective. A key support at $61.99, the Jun 30 low, has recently been breached, strengthening a bearish theme. A continuation lower would open $57.71, the May 30 low. Key short-term resistance has been defined at $69.36, the Jul 30 high. Clearance of this level would cancel a bear theme. Initial resistance to watch is $66.56, the Aug 4 high. Gold is trading sharply higher today as the metal begins the week on a bullish note. The primary trend direction remains up and sights are on key resistance and the bull trigger at $3500.1, the Apr 22 all-time high. Clearance of this hurdle would confirm a resumption of the uptrend and open $3547.9, a Fibonacci projection. Initial firm support to watch lies at $3371.9, the 20-day EMA.

• WTI Crude up $0.35 or +0.55% at $64.34
• Natural Gas up $0.03 or +1.1% at $3.03
• Gold spot up $26.66 or +0.77% at $3474.77
• Copper up $1.3 or +0.28% at $460.4
• Silver up $0.96 or +2.42% at $40.6828
• Platinum up $22.27 or +1.62% at $1393.87

The trend set-up in Eurostoxx 50 futures is bullish and the pullback from the Aug 22 high appears corrective - for now. Note that support at 5376.13, the 50-day EMA, has been pierced. A clear break of this average would strengthen a S/T bearish threat and signal scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. On the upside, resistance to watch is 5522.00, the Aug 22 high. A break of it resumes the uptrend. S&P E-Minis bulls remain in the driver’s seat and the contract traded to a fresh cycle high last week. This maintains the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, highlighting a clear uptrend and positive market sentiment. Attention is on 6543.75, a Fibonacci projection. Support to watch lies at 6332.47, the 50-day EMA. The latest pullback appears corrective.

• Japan's NIKKEI closed lower by 529.68 pts or -1.24% at 42188.79 and the TOPIX ended 11.99 pts lower or -0.39% at 3063.19.
• Elsewhere, in China the SHANGHAI closed higher by 17.604 pts or +0.46% at 3875.531 and the HANG SENG ended 539.8 pts higher or +2.15% at 25617.42.
• Across Europe, Germany's DAX trades higher by 132.22 pts or +0.55% at 24034.43, FTSE 100 higher by 28.4 pts or +0.31% at 9215.72, CAC 40 up 35.54 pts or +0.46% at 7739.44 and Euro Stoxx 50 up 22.17 pts or +0.41% at 5373.9.
• Dow Jones mini up 66 pts or +0.14% at 45667, S&P 500 mini up 9.75 pts or +0.15% at 6482.5, NASDAQ mini up 23 pts or +0.1% at 23484.75.

(MNI) London - China's President Xi Jinping has been speaking at the Shanghai Cooperation Organisation (SCO)'s leaders' summit in Tianjin, China, with Reuters reporting comments. Covering a wide range of geopolitical topics, Xi says the status of the United Nations must be safeguarded, and that the global governance system must be reformed and improved, with enhanced practical cooperation to prevent fragmentation. Xi: "Eighty years ago, the international community learned profound lessons from two world wars...[a] Cold War mentality, hegemonism and protectionism continue to haunt the world."

• XI: "New threats and challenges are increasing...[the] world is in a new period of turbulence and transformation." Xi proposes a 'global governance initiative', saying that all countries are equal participants and beneficiaries. Says this will promote 'greater democracy' and the voice of developing countries in international relations. Says "The house rules of a few countries should not be imposed on others".
• Xi: The SCO has become the catalyst of the global governance system...should continue to uphold the principle of non-alliance [and] non-confrontation...should build a community of common security in the region...we should seek integration, not decoupling.
• Xi says countries should 'act to defend international fairness and justice', and "continue to unequivocally oppose power politics." Says the SCO 'stands as a pillar in promoting [a] multipolar world."