Europe is at the center stage again as finance ministers of the 17-nation currency union failed to reach a consensus on Greek aid. Luxembourg’s Prime Minister Juncker noted that Euro-area finance ministers have decided to re-open talks and meet again this coming November 20. Greece reportedly needs additional financing of about $41 billion and decision surrounding this issue has been put off until the next meeting.
It’s a fairly busy day for the markets and investors will take a close look at today’s ECOFIN meetings, UK’s CPI and PPI, Bank of England’s Inflation Letter, Germany’s ZEW Economic Sentiment, and US Federal Reserve Governor Yellen’s speech.
Gold printed another $12 range yesterday to start the week off. The difference was yesterday’s close was decidedly bearish. Currently, price is comfortably set at $1,724 and further weakness is still possible. Traders need to watch price action around the $1,700 level.
After reaching a minor high of 86.75 on Friday, oil printed an inside day yesterday closing at the mid-$85’s. Bear traders can exert more pressure if they can push for a swift attack below the $84 level. They should watch out for any renewed demand around that level as well. Oil fell for the second day reportedly because of, among other reasons, concerns that supplies have increased in China and the US.
Markets are expected to come back to life as the week progresses, with US and Canada coming back online after celebrating their respective holidays yesterday.