Market Update

Italy - Zambia - Metals

German CPI rose by 2.2% vs expected 1.9%/ German unemployment at all-time low of 5,1% /…weak US pending home sales….equipment orders in the US weak ex defense, but FED is pretty positive. Second GDP estimate confirms 4.2% growth last Quarter.

BREXIT is getting many headlines - no deal in sight! Some experts believe, that a hard exit could cost the UK 2-4% of growth, while it could cost Europe up to 1%. No winners here! German GDP estimates have been reduced by a well regarded thinktank to 1,7% this year from 2,2%…Italy throwing Europe further into disarray? The heavily indebted country yesterday announced a new budget, planning for a 2.4% deficit - a slap into the face of the European Comission, which only allows 2% at worst. Italian bonds getting a hammering today! Not suprisingly, the Euro is weak today, loosing about 1% against the US. European equities are also weaker - especially banks, on the bank of the Italian “crisis”. Metals are holding very well - especially considered the currency - some are even up a fraction. ! LME stocks continued to fall across the board.

Zambia increases the roaylties on copper , which range from 4-6%, by 1.5% from 1.1.2019. If copper prices move beyond 7.500 US$/t, the royalty will increase to a flat 10%. Zambia is a big producer, FirstQuantum, Barrick and Glencore affected.

As we go into the weekend, the $ has given up some of it´s gains, and metals are strengthening - up by 1% for copper, 1.3% for nickel, and nearly 5% for zinc! Nice finish!

Nothing much from teh micro-side today!

have a good weekend!