US stocks dropped on Monday following the news of growing protests across China, with speculations of further lockdown tightening growing. Both the dollar and the 10yr US Treasury yield swung between gains and losses. Yen, on the other hand, jumped higher as investors sought out traditional safe havens. ECB’s Lagarde said that the borrowing costs are set to continue increasing even as economic activity across the bloc stalls. With that in mind, the EU CPI figure is out on Wednesday and is expected to come in slightly below the previous month, at 10.4% y/y, as energy pressures continue to ease from their highs. Fed’s Powell is also set out to speak on Wednesday; this should help solidify the recent minutes release from the central bank.
Metals fluctuated throughout the day but failed to gain the momentum in either direction, settling unchanged day-on-day. Today’s news of protests across China has rocked the markets over the weekend, but the momentum calmed since then, resulting in lacklustre moves on the day’s close. Aluminium opened lower but traced higher throughout the day; the metal failed to close higher day-on-day, settling at $2,362.50/t. Likewise, copper softened in the first half of the day, testing support at $7,850/t before coming back up to $7,959/t. Lead and zinc closed higher at $2,113.50/t and $2,937/t, respectively.
Likewise, the oil futures dropped on the open but managed to regain most of the losses in the latter half of the day, with WTI and Brent trading at $75/bl and $82/bl. Gold, on the other hand, had a strong reaction to China news, rallying up to $$1,763/oz, as appetite for traditional heavens intensified. Likewise, silver jumped higher, but weakness in the second half of the day brought the level to $20.90/oz.
All price data is from 28.11.2022 as of 17:30
