zerohedge.com / by Tyler Durden / 11/26/2015 07:43 -0500
While US floor markets are closed for the Thanksgiving holiday (equity, rates and energy futures are open until 1pm Eastern), Europe and Asia (as well as US equity futures) were busy rebounding overnight on strength in the commodity complex following yesterday’s news that China’s metals producers have asked for a wholesale government bailout or the “QEmmodity” as we have dubbed it, for the first time since 2009, which together with news that China would soon start arresting “malicious metal sellers” has provided a push for commodity prices across the board.
Even if China does bailout its metals producers, some wonder if it is worth it: “Any policy support from the government and smelters, including the reported investigation on short-selling, subsidies to smelters or joint production cuts, will be short-lived forces and won’t change the bigger picture of a market glut. Prices may be impacted temporarily” said Qi Ding, Beijing-based analyst at Essence Securities
Carrying over the Asian momentum, Europe’s Stoxx 600 is up 0.83% with autos, primarily Volkswagen, and basic resources outperforming, real estate and media sectors underperforming. Copper, nickel, zinc gain as China’s suppliers plan to meet this week to weigh response to price rout pushing copper and aluminum up by 2.2% and 1.5% respectively. Oil halts gain after three days.
The Euro remains near 7-month low vs dollar as investors speculate about the ECB’s potential stimulus expansion next Thursday, and whether one will even come now that the EUR is where Draghi wants it to be without having done a single thing.
The rest of the day will be fairly light in terms of data, however highlights will come in the form of potential comments from ECB’s Linde and Visco.
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