Amid continuing uncertainty about the health of the global economy and the state of the ongoing trade wars, investor sentiment has been turning defensive once again this week. Traditional havens for capital in turbulent times continue to attract capital this morning with Gold up 1.8%, Silver up 2.2% and the Japanese Yen up 0.6%.
Meanwhile, equities are under pressure for a second straight day. US index futures are down 0.6% to 1.1% this morning, led downward by the NASDAQ, adding to Monday’s US index losses of 0.25% to 0.75%. In Europe today, the FTSE is down 0.1% and the Dax is down 0.7%.
Crude Oil is trying to claw back some of yesterday’s losses which were sparked by another OPEC+ production increase into an uncertain demand environment. Although Oil is up 2.75% this morning, it remains well short of $60.00/bbl suggesting this may be more of a trading bounce. Copper, meanwhile, continues to climb, gaining another 0.7% and approaching $4.75/lb.
US President Trump and Canadian Prime Minister Carney are meeting today, which may give investors a better sense of how long and contentious the road toward resolving trade and other issues between the two countries may be. The Fed starts meeting today ahead of tomorrow’s interest rate decision. With the US 10-year treasury note yield holding near 4.35%, it appears investors are still expecting no change from Chair Powell and co.