Precious metals spot values are edging downward again today, though losses have been mitigated due to the recent pullback of the USD and US stock indexes. Today saw the European Central Bank convene for their monthly policy meeting, and what the ECB had to say did more to confuse investors than anything else. Looking ahead to tomorrow, the attention of the global marketplace will shift to the release of the US employment report for September. As it stands, the market is expecting well over 200,000 jobs to have been added last month, though recently weak economic data has brought about some cause for concern.
There is no denying that, up until today, this week was a fairly slow, monotonous trek forward. With a complete and total lack of economic data, investors have had very little to direct their attention towards. With that said, however, the geopolitical front has been anything but quiet due to the flurry of activity taking place in Hong Kong. Beginning last week and continuing through today, citizens of the special administrative region of China have been taking to the streets in order to protest what they are labeling a lack of democratic reforms. Though, initially, protesters were met with resistance in the form of riot police and tear gas, things have calmed down quite a bit and most of the protests remain nonviolent in nature. As the days and weeks carry on, the protesters have maintained that they will continue to take to the streets until top city officials agree to step down. Despite the fact that most of the protests remain subdued and orderly, stock indexes in the US and around the world have suffered mightily as a direct result of the unrest in the world’s financial capital.
Over the coming days and weeks, we will continue to keep a close eye on anything and everything happening in Hong Kong in hopes of learning more about where that situation is headed. For now, however, all we can do is continue to watch the streets, flooded with people, making it known that they will not sit idly by while their government becomes increasingly restrictive.
ECB Meeting Drives Euro Upward, Confuses Investors
With the last few months bringing nothing but downtrodden economic data from the European Union, each and every ECB meeting is met with a lot of attention from the general investing public. Today, the ECB talked about, but failed to provide a lot of detail regarding their plans to purchase private securities. While most investors and experts were under the impression that the security purchases would be enough to expand the EU’s balance sheet such that the Euro currency would depreciate further, the lack of details acted as a bit of a supportive factor for the currency. In fact, the Euro today made its largest intraday jump since last May.
Though the odds are definitely still stacked against the region’s currency, most are encouraged to see even a single day’s worth of gains. Now, the market will be paying close attention to the US employment report, set to be released sometime late Friday morning or early afternoon.