Rogue Trader In Custody

The “missing” rogue copper trader has
apparently been held in custody by Chinese authorities since last month.

Despite earlier government denials that Liu Qibing ever existed, news is now
circulating that he has been held for some time. The SRB has stated that the
trader was acting alone and on his own behalf, essentially denying the
government has to make delivery. A number of traders and officials suspect the
Chinese government is unable to cover the position and are expecting it to
default. Copper declined slightly today from Friday’s all-time high.

Surging metals prices pushed Aluminum to a 10-year high today.
Palladium hit another multi-year high along and Gold extended an 18-year high.
Silver was the biggest mover closing higher by 0.82%.

With colder weather forecast to hit the Northeast US this week
Heating Oil moved higher. Among the energies Natural Gas was the
biggest percentage mover, declining 1.42%. Crude Oil closed at $57.70 up
$0.49 on the session.

Among the major grains, Wheat was the biggest mover,
closing 1.10% lower. The entire livestock group closed lower, with Lean Hogs
(-2.89%) leading the decline. Wheat was listed in the

TradingMarkets Implosion 5
list on Friday.

In the softs, Coffee (+2.90%) hit a 6-week low before
reversing and staging a late day rally, mainly on short covering. Cotton
was another notable mover falling 1.10%. Cotton was listed in the

TradingMarkets Implosion 5
list on Friday. Lumber closed limit-down.

In economic news, The Conference Board released its index of
Leading Economic Indicators. The index rose 0.9% in October, which was in line
with estimates (report).

Treasuries posted decent gains (falling yields), while the
US Dollar Index
closed slightly higher. Read Kathy Lien’s article on Dollar
sentiment

here
and for the latest COT positions in the FX market

click here
.

Go to the
TradingMarkets
Indicators
page for help with your nightly trading research.


Economic News

Leading Indicators:

M/M Change – Actual 0.9% Consensus 0.9%

Ashton Dorkins

ashtond@tradingmarkets.com