FINANCIAL ANALYSIS
by Chris Weafer
All markets will open Monday nervously and weaker after the news of a breakdown in the US debt talks. Investors in Russia and Europe will wait to see how the US markets open before making any major decisions. That said, weakness should be relatively modest as there is a strong consensus that a debt deal will be agreed before the August 2nd deadline and while that almost certainly will only be a stop-gap measure, it should still allow for a better market backdrop in August. Asia's markets are down, on average, by 1.0% at mid session today partly as those markets had already closed on Friday when concerns started to hit western markets.
The price of gold is up 0.8%, at $1,614.6 per ounce - a new record high - and silver is up 1.2% as investors reflect the US debt uncertainty in haven assets. Good for Polymetal (PMTL LI) this morning. The dollar-euro rate is at $1.4368, i.e. almost unchanged from Friday's $1.4360. One month Brent is down 95 cents to $117.72 p/bbl while WTI is at $98.82 p/bbl. Copper is trading 0.8% lower.
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