US stocks fluctuated throughout the day ahead of the key economic data releases this week, which are forecast to highlight the slowing pace of economic and price growth in the economy. US home construction continued to fall in November as permits declined rapidly, another signs of housing market slowdown. The dollar weakened into 103.87, and the 10yr US Treasury yield remained elevated at 3.68%. The yen rallied to 131 after the surprise move from the BOJ to double the cap on 10yr yield to 0.5% while keeping the policy rate unchanged. Markets now anticipate the BOJ to raise rates next year.
Metals benefitted from a weaker dollar today, with the group closing higher day-on-day. Aluminium jumped higher during the day before reversing those gains to return to close at the $2,372.50/t level; the cash to 3-month spread was at -$40/t. Likewise, nickel jumped by more than $1,160/t following the news that NorNickel is considering cutting 10% of nickel output in 2023, keeping production at 215,000 tonnes. The metal settled at $28,334/t, and the cash to 3-month spread settled at -$142/t. Copper remained broadly unchanged at $8,354.50/t. Lead and zinc closed higher at $2,180/t and $3,082.50/t, respectively.
Oil futures edged higher on thin trading volumes and a softer dollar; WTI and Brent now trade at $75/t and $79/t. Gold and silver jumped higher today following the surprise move from BOJ, now trading at $1,818/oz and $24/oz, respectively.
All price data is from 20.12.2022 as of 17:30