EUROPEAN COMMODITIES UPDATE: Crude slips amid a tepid risk tone, metals largely contained

WTI/Brent: -1.0%/-0.8%

• Pressured, began the session modestly in the red before slipping further as the European session got underway given the tepid risk tone for the region.
• Specifics light in European hours but there were numerous updates in APAC trade, namely: China data/commentary, MPC’s Detroit refinery workers coming to a deal, an oil spill in the Black Sea, NOC declaring force majeure at Zawiya.
• As it stands, WTI and Brent are at the lower-end of c. USD 1.00/bbl parameters which are comfortably clear of Friday’s USD 69.87bbl and USD 73.30/oz troughs.
• Ahead, docket is light for commodities specifically and as such we await any update to the geopolitical front and/or further direction for the broader risk tone/USD on the US Flash PMIs.

Gold: +0.3%

• Firmer and at the top-end of parameters for today. XAU found itself under pressure in APAC trade and slipped to a USD 2643/oz base before bouncing back and residing at USD 2662/oz highs.
• Largely unreactive to Flash PMIs from the EZ/UK this morning. Benefitting from modest USD pressure though the index itself is largely rangebound.
• Ahead, direction will be sought from the US Flash PMIs before attention turns increasingly to the week’s numerous central bank announcements.

3M LME Copper: +0.1%

• Contained, not really deriving any direction from the morning’s PMIs or before than from China activity data and commentary.
• 3M LME Copper in a narrow USD 50 range which is just above the USD 9k mark and by extension in familiar territory. Rangebound performance which, as seen elsewhere, could well remain the case into the week’s main risk events of FOMC etc in the absence of fresh catalysts.
• Overnight, China’s activity data saw a marked miss in Retail Sales whilst Industrial Output saw a modest surprise uptick while there was no real follow through from weekend reports that the PBoC has room to further cut the RRR.