Commodities Daily - January 29, 2019

> Oil follows stock markets lower, despite US sanctions on Venezuelan PDVSA. The US criminal charges filed against Huawei and its CFO are dominating the headlines, which is negative for sentiment ahead of the crucial US-China trade talks that get underway tomorrow. Furthermore, yesterday China launched a WTO challenge to US tariffs. We think Brent will remain under pressure today owing to the prevailing risk-off trading. We see it hovering near or even below $60/bbl, with a likely dovish Fed tomorrow being the possible light at the end of the tunnel for risk appetite. > Gold prices rebound amid UK, US political news. The UK Parliament will vote on amendments to PM May's Brexit deal today, which should give us a better idea about what to expect ahead of the scheduled exit of the UK in March, including the likelihood of a new referendum or pushing the deadline back. Tomorrow, the Fed will announce a rate decision and Chairman Powell will hold a press conference.> Base metal prices trading higher on optimism about US-China talks, weaker dollar. Markets seem to have shrugged off the charges brought by US prosecutors against Huawei and its CFO yesterday. Meanwhile, the LME has lifted all trading restrictions on Rusal aluminum.