A fairly quiet day on a no real new news.
FOMC did not quite deliver explicit message they’re about to embark on additional QE of buying up government securities, but they reiterated a very dovish tone. This is what I had expected as I wrote yesterday – given some upside surprises we saw this month the Fed can afford to wait until next month.
The dovish tone was enough however to push long bonds up and dollar down. As you can expect gold had a big up day now right at 1290 mark.
WTI had a fairly bad day down 2% today on expectation of low refinery utilization and continual build-up in inventory.
Crude has decoupled from stock market this month. The fundamentals have caught up. Connor and I had a brief discussion on crude. I think it’s stuck in range 72-77.
Meanwhile, the Chinese commodity imports data just came out for August. At a glance it seems like the demand is picking back up especially for metals.
China refined copper imports rise 18.9 pct in Aug
• China's imports of refined copper rose 18.9 percent in August from a month earlier, up for a second straight month, as importers received more metal ahead of the peak consumption season in the fourth quarter.
• The world's top copper consumer imported 267,153 tonnes of refined copper in August, up from July's 224,723 tonnes, data from the General Administration of Customs showed on Tuesday.
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