Let’s begin with the headlines first in chronological order: Chinese CPI year over year is at 4.1% and the PPI at 1.70%. Spanish and Italian bond sales were successful with yields down to 3.384% (3 year bond) and 2.735% (12 month) respectively. Both the Bank of England and the ECB left interest rates unchanged at 0.50% and 1%. US retail sales was up 0.1%, down 0.2% less auto, and unchanged less auto and gas which were all lower than expected. US initial jobless claims was at 399k and the continuing claims was at 3628k, both higher than expected.
The conventional wisdom out there is that Chinese inflation seems to be under control, leaving the Central Bank of China more room to ease monetary policy. The European crisis seems to have subsided for the time being. The US data points to a tough employment environment and sluggish economy. With the world economy still in limbo, I am confused by the commodity rally for the past few days. Is 4.1% inflation rate in China something to cheer about? We would continue to trade carefully here as the commodities rally might be overdone.
| Metals | Last | %Change | Low | High |
| Au- Feb | 1661.3 | 1.32% | 1640.9 | 1662.9 |
| Pt-Apr | 1503.4 | 0.37% | 1496.0 | 1512.5 |
| Pd-Mar | 643.45 | -0.12% | 640.90 | 649.00 |
| Ag-Mar | 30.600 | 2.39% | 29.870 | 30.675 |
| London | AM | PM | Minor | PGMs |
| Au | 1652.5 | 1661 | Rh | 1375 |
| Pt | 1500 | 1498 | Ru | 110 |
| Pd | 641 | 645 | Ir | 1100 |
| Ag | 30.58 | DJI | 12406.65 | -42.8 |
| Currencies |
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| USD | EUR | JPY | GBP |
| USD | 0 | 1.2823 | 0.013035 | 1.5339 |
| EUR | 0.7797 | 0 | 1.01661 | 1.1963 |
| JPY | 76.72 | 98.37 | 0 | 117.674 |
| GBP | 0.6519 | 0.83593 | 0.8497 | 0 |
| *THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES |
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