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Wednesday follows a busy earnings day, with nearly two dozen major announcers. At the same time, a series of economic releases will keep markets moving.
Here's what you need to know.

- Australia starts the day off early with its wage index at 7:30 p.m. EST on Tuesday evening. Economists predict wage costs in the country will increase 0.80 percent in the final quarter of 2011, a 10 basis point acceleration from the third quarter.

- A flash HSBC reading of Chinese manufacturing will be released at 11:30 p.m. EST. The indicator was last read at 48.8. A reading above 50 indicates expansion.

- Attention shifts to Europe at 1:30 a.m. EST on Wednesday morning, with French CPI. Economists polled by Bloombergexpect a 0.2 percent decline in January.

- At 3:00 a.m. EST French PMI will be announced, with a preliminary reading for manufacturing expected at 49, 0.5 points higher than in January. However services PMI is seen falling to 52.

- At the same time, Czech industrial PPI for January is set for release, with economist predicting month-on-month growth of 0.9 percent, an acceleration from the 0.1 growth seen in December.

- Germany's Purchasing Manger Index will be announce actual results for February at 3:30 a.m. EST. Manufacturing is seen increasing to 51.5, while services jump to 53.9 from 53.7.

- Swedish unemployment is set for release at 3:30 a.m. as well, with economists forecasting a an 80 basis point jump in January, to 7.9 percent.

- Final readings of Italian consumer prices are set for release at 4:00 a.m. EST, with expectations for a 0.3 percent rise in January — the same number as an earlier estimate.

- Between 4:00 a.m. and 5:00 a.m. EST, eurozone industrial new orders, PMI services and PMI manufacturing will be announced. Expectations are for seasonally adjusted new orders to rise 0.5 percent in December, while services PMI increases to 50.6 from 50.4 for February. Manufacturing PMI is seen remaining just below 50, although increasing from an earlier reading of 48.8.

- At 10:00 a.m. EST, existing home sales will be announced in the U.S., with consensus for a 0.9 percent increase in January, following a 5.0 percent surge in December.

- Closing out the day at 2:00 p.m. EST is the release of Argentinian unemployment

Gold: Gold and silver prices started off the week with very sharp gains, this rally might be related to the recent development in Europe regarding the approval of the Greek bailout package and the effect it had on the Euro and other currencies on Monday when the market had anticipated this news. The upcoming reports regarding the U.S. home sales and EU manufacturing PMI might affect the direction of gold and silver prices via their relation with USD and Euro. WE speculate gold and silver prices will continue their upward trend but at a slower pace than yesterday.


Support : 1751.60 1743.80 1735.30
Resistance : 1765.40 1773.30 1781.70

Silver:
Support : 34.19 33.92 33.63
Resistance : 34.67 34.94 35.23

Crude Oil: The tensions between Iran and Europe will probably keep oil price high in the near future. In the upcoming week there are several financial reports that might influence crude oil tradersincluding the U.S. new home sales report, and Chinas manufacturing PMI. If these reports will show progress, it might also pressure up oil prices. Finally, if major currencies including EURO, CAD and Australian dollar will appreciate against the U.S. dollar, this may positively affect crude oil prices. WE speculate that during the fourth week of February, WTI oil price will trade in the range of $98-$105



Support : 105.81 105.32 104.78
Resistance : 106.69 107.19 107.72



Written by:

WE Commodities
Investment Advisory

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