Commodities Daily - September 24, 2019

> Oil trading sideways on mixed reports of Saudi recovery, geopolitical tensions and falling eurozone and Japanese PMIs. This morning, Brent is being pressured to the lower end of its latest $64-65/bbl range on a downbeat September Japanese manufacturing PMI that fell to 48.9, from 49.3 in August. Meanwhile, recent reports that China has granted new tariff waivers for US soybean imports after mixed results of the low-level trade talks are providing tailwinds for oil prices. Later reports suggest that high-level trade talks will take place during the week starting October 7. We expect the lack of direction in oil and stock markets to hold throughout the day today and expect Brent to keep oscillating within the $64-65/bbl range.> Safe-haven demand remains elevated, supporting gold. Yesterday, weak data from Germany and the eurozone was accompanied by worrying comments from ECB officials. Positive data from the US and details on the timing for the resumption of trade talks between the US and China failed to lift the mood. Gold remained elevated, and this morning it was trading at $1,522/oz. Today the market awaits the IFO indexes for Germany and France and the UK Supreme Court's decision on Boris Johnson's prorogation of Parliament. The US housing price index, consumer confidence and Richmond Fed manufacturing index are also on the agenda. Investor sentiment appears to be negatively charged, so we see gold remaining above $1,520/oz today, and it could even test the $1,530/oz mark.