Thu 03 May 2012 07:27:00 CT
Compiled 05/03/12 6:00 AM (CT)
Statistics: London Gold Fix $1,642.50 -$10.00 LME Copper Stocks 235,200 tons -3,750 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With another new low for the move overnight July silver reached down to the lowest level since April 25th. Residual fears of slowing in the US, concern toward rising debt yields in the Euro zone and lackluster physical demand expectations has left the bear camp confident. Fear of slowing in the US is also a hallmark of the bear camp in silver and other physical commodity markets and therefore the trade will probably take a lot of direction from the private layoff report that is due out early this morning and the silver trade will probably take additional guidance from the US initial claims data this morning. Given the downward bias in industrial commodity markets recently, it could take a better than expected showing in one or more of the US data points today, just to stem the slide on the charts, especially since a lower low pattern appears to give the silver bears a distinct technical edge. Even if there is supportive data from the US this morning, some silver traders might not be willing to alter their dour economic outlook until the Friday morning monthly payroll report is released. Comex Silver Stocks were 141.591 million ounces down 537,909 ounces. Silver stocks have increased 12 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were weaker ahead of the European debt auctions overnight. However, the Shanghai equity market was higher as that market was able to buck the negative trend in the rest of the region off suggestions that the Chinese might liberalize their currency exchange rate mechanism. European equity markets were mostly higher to start and that was somewhat surprising considering that Spanish and Italian debt yields were on the rise overnight. US stock markets were showing little direction early, as the markets generally remain disappointed in the track of the US economy in the wake of a disappointing private employment survey on Wednesday morning. Therefore the markets are likely to pay significant attention this morning to US initial claims and another private jobs report that is due out very early in the Thursday morning US trade. There will also be two Fed members taking part in a conference on the west coast today and that panel discussion starts around 10:30 am cst.
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