Crude Oil helping commodities as well

WTI Nymex crude oil is paring back overnight gains and now back below $62.00. The move higher overnight was seen as short-covering after reports that world powers had given Iran a new early October deadline to halt uranium enrichment, before they start discussing United Nations sanctions.

However, with oil supplies ample ahead of the winter season demand and risk of a hard-landing in the US in the wake of the surprising weak US Philly Fed survey, traders say speculators are seen testing the OPEC resolve by pushing crude oil prices below $60.00 level.

A close below $60.15 today will be deemed as extremely bearish, i.e. the first close below the 100-week moving average since April 2003.