US stocks fluctuated today as investors turned their attention to the turmoil in the crypto market, as it weighed on risk sentiment. Yesterday’s inflation figures pointed to a slight cooling on a year-on-year basis; however, the University of Michigan data showed that consumers expect inflation to increase once again to 5.1% and 3.0% for 1 and 10 years, respectively. The dollar continued to fall past 107, and the 10yr US Treasury yield sold off to 3.81%. Elsewhere, EU officials slashed their forecast for growth next year, down to 0.3% from a previously-forecasted 1.4%, predicting barely any expansion while at the same time elevating their projections for consumer prices to 6.1%.
The metals market benefitted from the news of Chinese officials easing lockdown measures by reducing the isolation period as well as testing requirements. Later on in the day, the metals took another leg higher after the regulators told the second-tier banks to provide another $56bn of financing for the property sector in the final two months of the year. Policymakers have stepped up efforts to support the deteriorating sector after monetary policy cuts failed to revive growth. Aluminium rallied by more than 6.0%, as a result, jumping above $2,400/t to settle at $2,463.50/t, the August high. Copper jumped higher above $8,500/t to close at $8,492.50/t, a level not seen since June. Likewise, zinc strengthened by more than $130/t to close at $3,024.50/t. Lead gains were more moderate but closed above $2,140/t at $2,161.50/t.
Oil futures also soared as a result, with WTI and Brent settling at $89/bl and $96/bl. Precious metals fluctuated, and gold and silver remained broadly unchanged at $1,761/oz and $21.44/oz, respectively.
All price data is from 11.11.2022 as of 17:30