Hello traders, welcome to Monday. Today we kick off the week with important news from China, where the government has cut benchmark lending rates by 25 basis points. While the cut was anticipated, the size of the reduction has caught some by surprise, leading traders to reassess their strategies as the market adjusts to this development.
Significant movements are already underway, particularly in the precious metals market. Gold has surged to new long-term highs, driven by bullish momentum, while silver is playing catch-up with a more than 3% gain so far. Other metals like platinum and palladium are also climbing higher, demonstrating a broad-based rally in the metals space. Meanwhile, oil is moving in the opposite direction, experiencing a sharp decline, highlighting a divergence between oil and metals in early-week trading.
On the indices front, the week begins with mixed futures, though the overall sentiment remains positive. The S&P 500 is edging closer to its long-term highs, while the FTSE is nearing short-term highs. NASDAQ, while slightly trailing, is still maintaining a solid position.
In the currency market, the Japanese yen saw significant gains during the Asian session, but as we head toward the European session, some of these gains are being pared back. On the weaker side, both the Canadian dollar and the US dollar are losing ground, with speculators closely watching the yen’s movements. Traders are also keeping a close eye on the precious metals markets, where the bullish momentum in silver and gold could provide further opportunities.