Compiled 10/26/10 6:00 AM (
CT
) Statistics: London Gold Fix $1334.00 -$11.00 LME Copper Stocks
367,475 tons -900 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The
silver market is showing some positive divergence relative to the
gold market in the early Tuesday trade. With silver, copper and
platinum all higher in the early action and gold somewhat weaker,
it is possible that industrial commodity forces are lending some
support to silver. In fact, favorable earnings news from chemical
sector player DuPont this morning has led some to conclude that
industrial activity in the US is capable of avoiding a double dip
recession, and to some that might be supportive of silver prices.
The silver market saw a higher European silver fix this morning and
that might have been the result of positive Chinese silver import
data for September relative to year ago levels. However, the silver
market is facing some slightly limiting early currency market
action in the early Tuesday trade action. Comex Silver Stocks were
111.182 million ounces, down 802,519 ounces. OUTSIDE MARKET
DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe
are generally weaker this morning. U.S. stock indices are
moderately lower during the early Tuesday trade. The Dollar is
stronger against most of the major currencies during overnight
trading, although losing ground against the Pound. Japan's Finance
Minister warned the Japanese government would act decisively in the
currency markets if needed against a further rise in the Yen. A
Chinese vice Commerce Minister said that China's trade surplus will
shrink this year due to rising import levels. China will raise
retail fuel prices by 3% today, reversing a price cut by the same
amount in June of this year. The head of the Euro zone's emergency
lending facility said that the worst of the economic crisis in
Europe is over. The French Finance Minister said that strikes
protesting planned pension reform will not affect that nation's
2010 growth forecasts. UK GDP during the second quarter was up
0.8%, higher than expectations. A private survey of German Consumer
Sentiment during late October was 4.9, lower than projections.
French Consumer Confidence during October was -34, higher that
forecasts. Major US economic indicators this morning include a
private survey of Home Prices at 8:00 AM, a private survey of
Consumer Confidence along with the Richmond Fed Manufacturing Index
at 9:00 AM, and private surveys of store sales released during the
morning.
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