COMMODITIES: Medium-Term Trend Signals for Gold Remain Bullish
WTI futures traded to a fresh short-term cycle high on May 21 before finding resistance. A bear threat remains intact and the recovery since Apr 9, appears corrective. Key resistance to watch is $62.54, the 50-day EMA. A clear break of it would highlight a stronger reversal and open $65.82, the Apr 4 high. For bears a reversal lower would refocus attention on $54.33, the Apr 9 low and bear trigger. A bullish theme in Gold remains intact and recent gains signal the end of the corrective phase between Apr 22 - May 15. Medium-term trend signals are bullish too - moving average studies are in a bull-mode position, highlighting a dominant uptrend. A resumption of gains would open $3435.6 next, the May 7 high. Key support and the bear trigger has been defined at $3121.0, the May 15 low.
- WTI Crude up $0.19 or +0.31% at $61.17
- Natural Gas up $0.03 or +0.71% at $3.551
- Gold spot down $21.42 or -0.65% at $3297.02
- Copper up $1.55 or +0.33% at $468.95
- Silver down $0.14 or -0.42% at $33.184
- Platinum down $7.27 or -0.67% at $1078.83
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EQUITIES: Notable US Earnings for Today
US Earnings for Today, Two of the Mag 7 report after Markets:
- Pre Market: Caterpillar.
- Post Market: Meta, Microsoft, Qualcomm.
GERMANY: SPD Co-Leader Klingbeil Puts Himself Forward As Fin Min & VC
Tagesspiegel reports that co-leader of the centre-left Social Democrats (SPD), Lars Klingbeil, has put himself forward to serve as finance minister and vice chancellor in the incoming 'grand coalition' gov't with the centre-right Christian Democratic Union/Christian Social Union (CDU/CSU). NTV reports that the party's executive committee voted unanimously in favour of this position. The prospect of Kingbeil serving as finance minister and vice chancellor had previously been mooted during the course of coalition negotiations (see 'GERMANY: Coalition Deal Reached, Presentation @ 1500CET, SPD Takes Fin Min', 9 Apr 1126BST).
- Klingbeil (47), hailing from Lower Saxony, first sat in the Bundestag in 2005 before being re-elected in 2009 and serving ever since. He is viewed as a moderate within the party, hailing from the centrist, liberal Seeheim Circle, which bills itself as a 'practical and undogmatic' grouping, compared to other more overtly socialist factions.
- This comes after confirmation that the SPD's membership approved the coalition agreement with 84% approval on a turnout of 56%.
- As Tagesspiegel notes, this marks the third time that the SPD membership has been asked to approve a governing coalition (each time with the CDU/CSU). The percentage of members approving is higher than ever (76% yes in 2013, 66% yes in 2018), but the turnout is the lowest to date (higher than 78% in both cases). Some have put the low turnout down to the online-only nature of this year's vote dissuading some less tech-savvy SPD members from voting.
EQUITIES: Estoxx Risk Reversal
SX5E (19th June) 4500/5600RR, sold the put at 23.5 in 3k.
