Commodities Daily - January 23, 2019

> Oil prices fall along with tumbling stock markets as global economic slowdown comes back into focus. Appetite for risk assets has improved slightly this morning, with Brent hovering slightly below $62/bbl at the time of this writing. After yesterday's selloff, we expect Brent to pare losses, albeit very gradually, likely securing itself only slightly above $62/bbl as sentiment remains fragile. We note that the S&P 500 is currently trading around its 50-day moving average (at 2,633) and various technical indicators suggest looming consolidation (potentially oil price-negative).> Gold closes higher following weak data from US. Tomorrow, the US Senate is expected to vote on two proposals to end the government shutdown. If both are rejected, this could lead to a correction in the dollar index, which would provide support for gold prices.> Base metals recover following correction at the start of the week. The focus today is on Chinese measures to boost the economy and US-China trade talks in Washington scheduled for January 30-31. Aluminum is currently seeing the most active trading and was up 1% this morning at $1,901/tonne.