Gold Bounces Back as Stocks Slide

A rough week for European markets after last weekend’s European Parliament election results sparked a round of political turmoil continues this morning with Paris down 2.2%, Frankfurt down 1.1% and Milan down 2.5%. London is down a more moderate 0.2%. The US has been trying to defy gravity for the last two days but this morning the European downturn appears to be spreading with US index futures down 0.2% to 0.6%.

A flight to traditional havens for capital appears to be underway as precious metals are rallying this morning with Gold and Silver up 1.25% and 1.00% respectively. Commodities are also bouncing back today with Copper up 0.3% and US Crude Oil up 0.4%.

With only a few earnings reports out this week, traders seem to be concentrating their focus on the few names that do have news this week. Following in the footsteps of Oracle and Broadcom* earlier this week, Adobe is up 13.4% in premarket trading after beating the street on earnings ($4.48 vs street $4.39) and raising guidance.

*Shares of Broadcom are held in some portfolios managed by SIA Wealth Management. 

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