Commodities Daily - November 28, 2019

> Oil dips on downbeat EIA inventory report; details of China's response to US Hong Kong legislation eyed. This morning, Brent has dipped below $64/bbl and stock markets have wobbled after Donald Trump signed into law legislation backing pro-democracy protesters in Hong Kong. China's Foreign Ministry said that it will respond with "firm countermeasures." Further details on China's response will certainly be a key driver for global markets in general and risk assets such as oil in particular. Today we would expect Brent to retest yesterday's support at $63.55/bbl. If this is broken, Brent will likely to consolidate at $63/bbl later in the day. The US market is closed for Thanksgiving, which will limit liquidity for markets globally.> Gold prices remain under pressure even after Trump signed the Hong Kong bill. In response, China summoned the US ambassador to express its displeasure with the move and also reiterated its intentions to take countermeasures. So far, however, gold's response has been fairly modest and it continues to trade below $1,460/oz. No major events are expected today, which is Thanksgiving Day in the US. In the eurozone, meanwhile, M3 money supply and consumer confidence data are due for release.