US stocks jumped higher on the back of better-than-expected corporate earnings results, boosting market confidence. The 10yr US Treasury yield softened following the surprising hawkish tone from the BOJ yesterday, and the level now stands at 3.68%. The dollar was little changed. US data pointed to further deterioration in the US housing market, with sales of previously-owned homes falling for the 10th straight month in November. Meanwhile, US consumer confidence rose by more than forecast to 108.3, the level not seen since April, as further easing is seen in energy prices. Consumers continue to pay close attention to price growth, and continued softness month-on-month should improve confidence marginally.
Metals carried over yesterday’s positive sentiment, and the majority of the group closed higher day-on-day, with China’s abrupt lockdown shift and an influx of policies from the government supporting the sentiment. As a result, iron ore futures rose to test the four-month highs at $111/mt. Nickel, in particular, jumped higher once again, testing resistance at $29,500/t before settling slightly below at $28130/t. Lead was also seen rallying in the latter part of the day, offsetting earlier losses to close at $2,212.50/t. Aluminium and copper wavered and remained broadly unchanged on the day at $2,391.50/t and $8,383.50/t, respectively; the cash to 3-month spreads jumped higher to -$28.25/t and -$15.50/t, respectively. Only zinc closed lower on the day at $3,009.50/t.
Oil futures rose for the third day after the report showed a drop in US crude inventories. WTI and Brent increased to $78/bl and $81/bl. Gold and silver weakened slightly to $1,817/oz and $24/oz, respectively.
All price data is from 21.12.2022 as of 17:30