Premature Optimism in Greece Fails to Lift Commodities

Financial markets were mixed yesterday. While Wall Street climbed as new banking capital requirements announced by the BIS were less harsh than feared, commodities failed to rise in tandem as US personal spending and income data disappointed. The front-month contract for WTI crude oil price had been flirting around 90 throughout the day yesterday, initially dipping to a new 4-monht low of 89.61 before settling at 90.61, down -0.60%. The equivalent Brent crude contract initially fell to 102.28 before reversing losses and ending the day at 105.99, up +0.83%. Increased optimism that the Greek parliament will pass the austerity package reduced demand for gold as a safe haven.

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Premature Optimism in Greece Fails to Lift Commodities