There have been a number of big developments that are moving markets overnight, but perhaps the most intriguing has been in the gold market. It increasingly looks like last week’s selloff down to $1,140 was the final washout and a recovery may be getting underway. Last Friday’s rally from $1,150 to $1,190 kicked off the turnaround and after a normal pause to start the week, more traders appear to be jumping on the bandwagon today. For the longest time, it seemed that all the news around gold had been making traders more bearish, but overnight, reasons to be more bullish have moved to the forefront. Apparently Russia has been buying more gold this and more central banks may be joining it. Speculation has grown that with gold could be included in the basket of assets the ECB may be willing to buy is it tries to re-inflate its balance sheet over the next two years. Traders also appear to be speculating that the results of a Swiss referendum later this month on gold holdings may force the SNB to at least stop selling and lending out gold and encourage it to start buying again. European indices are trading higher this morning after catching a tailwind from a much better than expected German ZEW investor survey, particularly the expectations component, the first bit of economic good news from the continent in some time, EUR and other continental currencies are outperforming today with NOK and SEK leading the charge and CHF also taking part. GBP is flat today against USD following mixed UK inflation numbers. JPY is the worst performing currency of the day while the Nikkei rallied overnight after PM Abe announce an 18-month delay in a sales tax increase after the last increase pushed the country into a recession. He also indicated that he plans to dissolve Parliament and call an election, likely for mid-December which can be sees as a referendum on Abenomics and the country’s reform program. US indices are holding steady so far today with no major US economic news to drive action and earnings season winding down. Tomorrow could bring more interest to US related markets with FOMC minutes scheduled. Corporate News Home Depot $1.15 vs street $1.13, same store sales 5.2% vs street 5.0% Agilent $0.88, guides next Q to $0.39-$0.43 vs street$0.47 Urban Outfitters $0.35 vs street $0.41 Sears Canada ($1.16) on sales of $834M down from $982M a year ago. Same store sales (9.5%) George Weston $1.59 vs street $1.55 Economic News Economic reports released overnight and this morning include: US producer prices 1.5% vs street 1.3% US PPI ex food and energy 1.8% vs street 1.5% UK consumer prices 1.3% vs street 1.2% UK core CPI 1.5% vs street 1.6% UK retail prices 2.3% as expected UK producer input prices (8.4%) vs street (8.3%) UK producer output prices (0.5%) vs street (0.2%) UK ONS house prices 12.1% vs street 11.2% Germany ZEW current 3.3 vs street 1.7 Germany ZEW expectations 11.5 vs street 0.5 Eurozone ZEW expectations 11.0 vs previous 4.1 Australia leading index (0.3%) vs previous (0.2%) Economic reports due later today include: 10:00 am EST US NAHB housing mkt index street 55