SPDR Gold Trust (
), NYSE:GLD, iShares Silver Trust (
), NYSE:SLV, United States Oil Fund LP (
), NYSE:USO, NYSE:SLV, NYSE:USO
Friday the People's Bank of China (PBOC) announced it will
raise the reserve requirement ratio (
) by +50 bps to 19.5%, effective February 24.
This will be the 8th hike RRR in the current cycle and the 2nd
one this year reflected the government's commitment to curb
Some players expressed concern about the impact of tightening
on China's growth and commodity demand outlooks.
Shayne and I believe that while commodity prices may be pushed
down initially on the announcement, the longer-term outlook
remains Strong, as economic growth in China cannot be damped
easily. And you likely noticed the Key rate raise was a market
The chaos in the Middle East and North Africa (
) raised concerns over Crude Oil supply disruption, as the unrest
in Egypt drove Brent Crude Oil prices past 100 bbl, and have
continued to trade above it.
Nymex Crude Oil prices have picked up a bit in the last couple
of days, the WTI-Brent spread is still pretty wide, and the
disconnected performance between the 2 benchmarks is expected to
continue for some time to come.
This weekend the G-20 finance leaders agreed on indicators,
such as trade balance, exchange rates, interest rates and public
and private debts, to closer monitoring of global economic
But, the measures to narrow imbalances were not compromised.
As noted by French Finance Minister Christine Lagarde, the
meeting's Host, 'it wasn't easy, there were obviously diverging
Macro-ecnomic data for released this coming week includes US
consumer confidence which likely rose to a new 3 yr high.
In the EuroZone, flash PMI's are expected to have improved in
the 17 Nation region as well as in Germany.
The minutes of the February BOE meeting may show more members
favoring a tax rate hike.