Commodities Daily - August 9, 2019

> Oil stabilizes amid upbeat stock markets, reports of Saudi export cap; IEA report in focus. Investors are currently digesting the IEA's monthly oil market report, which was released at 11:00 Moscow time. We think the report is likely to dampen the mood today, as it highlights that the global economic slowdown constrained consumption growth during the first five months of this year to the weakest level in a decade. Headwinds are also coming from a reported 5.3% y-o-y drop in Chinese passenger car sales in July, following an uptick in June due to the clearance of inventory. All in all, we see Brent struggling to hold above $57/bbl later today. Other important releases today include US PPI and the Baker Hughes rig counts.> Gold stabilizes at around $1,500/oz. Market volatility was moderate yesterday, and gold was traded at $1,490-1,500/oz for most of the session. Positive US initial jobless claims had only a short-term negative impact on quotes before another round of criticism of the Fed by Donald Trump provided further support. US PPI data is due today. After this week's rapid rally, we see gold trading sideways at $1,490-$1,510/oz today amid a lack of significant news.> Base metal prices under pressure amid negative news flow. The big news this morning is that the White House is reportedly holding off on a decision on whether to grant US companies licenses to continue working with Huawei. China also reported a decline in its PPI this morning. Nickel remains in the spotlight. According to the LME, average daily turnover in the metal rose 23% in July.