With a lack of fresh incentives to drive price action, financial markets have begun the new trading week within recent ranges and are in consolidation mode.  The greenback is finding a more pronounced offer side to its book, despite the overnight slide in commodities that resulted from what could be considered a flash crash in Gold during the Asian session.  Though off its overnight lows, the yellow metal fell by over $40/oz. in a minute, trading through the $1,100 figure to hit its lowest level in five years.  Whether the large sale volume ripping through the precious metals market was the work of an algorithmic trading program going wild, or just a poorly timed sell order that ignited a wave of triggered stops which exacerbated the selling pressure, the consequences were felt throughout commodity markets, with silver and platinum experiencing similar price action.  The hydrocarbon market is also seeing a stronger interest towards hitting the bid side of its book, with lingering concerns around Iranian oil supply keeping a lid on any strength in WTI.

Though there was another relatively volatile day of equity trading in China, the Shanghai Comp managed to finish its session up by just under 1%, helping to alleviate some concerns the tumble in Chinese stocks has not yet run its course.  Equities were under pressure earlier in the overnight session after the CSRC announced they are studying an exit plan for the stock stabilization plan, though the Shanghai Comp managed to recoup its earlier losses after the CSRC clarified their earlier comments and committed to focusing on stabilizing the market and “preventing systematic risks.”

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