US stocks sold off following a solid jobs report today. The yields jumped as a result, with a 2yr yield now at 4.4% and a 10yr yield at 3.60%. Nonfarm payrolls increased by 263,000 in November, topping the forecasts, as the unemployment level remained unchanged at 3.7%. The figure is still softer than the previous months’ average and shows continued easing in the labour market in the US. The dollar jumped higher, testing resistance at 105. The euro settled at 1.05 as the bloc settled on the oil price cap at $60/bl.
The jobs data released triggered a market sell-off, however, overall strength prevailed in the second half of the day, with the metals settling higher on Friday. Indeed, aluminium jumped by $98/t after dipping below the support of $2,480/t following the announcement; the metal settled higher at $2,545.50/t. Likewise, nickel rallied in the second hand of the day, above $28,000/t to settle at $28,862/t, marking the second consecutive jump to higher levels. Copper fluctuated between $8,250/t and $8,400/t for the majority of the day but later strengthened further to settle at $8,450/t. Lead and zinc closed higher at $2,202.50/t and $3,079/t, respectively. The PBoC’s Governor Gang said that the central bank’s attention should now be focused on economic growth, a potential sign that policymakers might gear up the support for the economy as it struggles under the weight of covid lockdowns. He also pointed out that inflation remains relatively subdued and will likely remain within range in 2023.
Oil futures closed the volatile week marginally unchanged as investors price in their expectations ahead of the OPEC+ meeting. WTI and Brent trade at $81/bl and $86/bl. Gold and silver remained unchanged at $1,793/oz and $23.00/oz, respectively.
All price data is from 02.12.2022 as of 17:30