Gold Finds Fresh EU Buyers, Brexit, and FedSpeak- Top Day

Politics

Top Day:

Fischer, not your typical Fed academic but savvy talker nonethless says 2 hikes seems about right. As of this writing, U.K.s PM May has handed the letter of Intent for theUK to leave the EU, and EU inflation hawks are looking at $1500 Gold.

Theresa May sends the letter that will trigger Brexit talks
EU regulators block Deutsche Borse's LSE takeover
Fischer says two hikes seem about right.

Gold Finding Fresh Buyers

Negative real rates will help to boost price, Incrementum says
‘We’re seeing a pick-up in inflation all across the globe’

Prices may climb to $1,400 to $1,500 an ounce this year, said Ronald-Peter Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101.5 million).
While higher U.S. rates typically buoy the dollar and can hurt bullion, the commodity has advanced during previous hiking cycles. Trump’s recent talking down of the greenback’s strength should also be positive for gold, according to Stoeferle.

Full Story this morning on MarketSlant next post

Brexit Begins

At around 7:30 a.m. Eastern Time the British ambassador to the European Union will hand President Donald Tusk a letter invoking Article 50 of the Lisbon Treaty, an act which is the starting gun on the two-year exit negotiation process. Prime Minister Theresa May will address parliament in London at around the same time. The pound was trading at $1.2440 by 5:13 a.m., its lowest level in a week.

EU blocks LSE takeover

European regulators blocked Deutsche Boerse AG's planned $14 billion takeover of London Stock Exchange Group Plc, saying the deal would have created a de facto monopoly for clearing bonds and repurchase agreements in the EU. Margrethe Vestager, the EU's antitrust commissioner, said the companies failed to offer the remedies required to address competition concerns. The blocking of the deal comes the day after EU regulators approved the $77 billion Dow Chemical Co. and DuPont Co. merger.

Team two-hikes

Federal Reserve Vice Chairman Stanley Fischer said in an interview with CNBC that two more rate hikes this year "seems about right." Fed Chair Janet Yellen didn't mention monetary policy in her speech yesterday where she said that challenges remain in the U.S. labor market. Continuing the heavy week for Fed-speak, today we'll hear from Boston Fed President Eric Rosengren at 11:30 a.m. and San Francisco President John Williams at 1:15 p.m.

Markets are quiet

Overnight, the MSCI Asia Pacific Index ex-Japan rose 0.3 percent, while Japan's Topix index dropped 0.2 percent as three-quarters of companies in the index traded ex-dividend. In Europe, the Stoxx 600 Index was 0.1 percent lower at 5:47 a.m. as investors awaited the Brexit trigger letter. U.S. futures were unchanged.

Turkish bank arrest

A senior executive at one of Turkey’s largest state-owned banks was arrested in the U.S. on charges of conspiring to evade trade sanctions on Iran. Shares in the bank -- Turkiye Halk Bankasi AS -- plunged as much as 19 percent in trading this morning. The arrest comes as tensions between Iran and the U.S. escalate, with tit-for-tat increases in sanctions in recent days.

Overnight Headlines

Metals

The Great Nevada Lithium Rush to Fuel the New Economy (BBG)
Goldman Sachs Backing A Copper Boom In 2017- details soon
Funds like Incrementum are looking at $1500 Gold this year- story soon

US Markets

US dollar pulls higher on Fed talk, sterling slips on Brexit anxiety (RTR)
FDA Approves Drug for Primary Progressive Multiple Sclerosis (WSJ)
Behind Trump Rally Resilience Is Unusually Firm Profit Outlook (BBG)
Amazon and Facebook Hit Unexpected Obstacle in India: China (WSJ)
German engineering association sees potential upswing in U.S. (Reuters)

Middle East

Islamic State shelling stops work on damaged Syrian dam (Reuters)

Asia

Malaysia inspects North Korean coal ship for possible U.N. sanctions breach (Reuters)

Merger of Deutsche Börse and LSE Blocked by EU Regulator (WSJ)
British PM May fires starting gun on Brexit (Reuters); Britain Starts ‘Historic’ Brexit Process (BBG)
Firms stack up Brexit warnings as May triggers divorce talks (Reuters)
Huge range of sterling forecasts clouds horizon for Brexit talks (Reuters)

US Politics