MKS PAMP Group - Europe/US Market Update

Ranges: Europe/US Markets

MACRO: 

- US equities rallied for the 5th straight session on Monday led by Industrials (+2.95%), energy (2.85%) and telecommunications (+2.67%) 
- The DJIA gained 1.85%, the S&P 500 put on 1.83% and the NASDAQ finished up 1.56% 
- Participants have digested Friday's weak NFP print in a positive fashion with traders now expecting the first rate hike to not materialise until at least March 2016 
- In US economic data, the ISM and PMI non-manufacturing surveys softened in September following strong prints in July and August 
- In Europe, stock markets marched higher on the back of a jump in commodity prices 
- The DAX added 2.74%, the CAC 40 put on 3.54% and in the UK the FTSE 100 gained 2.76% 
- The September euro area composite PMI fell to 53.6 reflecting softening in the services activity 
- Mining multinational Glencore put on another +21% 
- The dollar index is slightly higher, up 0.251 to 96.081 
- The VIX "complacency" gauge is down 1.73 to 19.21 
- US 10-year bond yields are up 0.07 to 2.05% 
  
PRECIOUS: 

- It was another relatively volatile session for the precious complex 
- The post-NFP rally in gold looked like petering out during the Asian and early European sessions on Monday before US participants bid the metal up through 1140 
- The high of 1142.20 was hit just before 10am in NY but interest lagged from then on with the metal trading between 1132 and 1138 for the remainder of the session 
- A prolonged low interest environment will continue to help the precious metals on the long side 
- Near term resistance is at the September high of 1156.40 whilst the first support level is around 1130 
- Silver continued its impressive rally with the metal jumping another 2% to touch a high of 15.72 
- Platinum is holding above 900 whilst palladium was sold heavily during the US session and continues to be sold today during the Asian morning session 
- The Philadelphia gold & silver index is up 4.59% and the NYSE Arca gold bugs index gained 5.20% 

PRE-ASIA COMMENTS: 

- Gold is slightly higher in early Asian trading (last 1136.50/00) 
- Stock markets are also in the green in early trading following the lead from Wall Street 
- Data today: 
RBA interest rate decision 
German factory orders (Aug) 
ECB non-monetary policy meeting 
Canadian balance of trade (Aug) 
US balance of trade (Aug)