US stocks declined today following a strong data release highlighting the prevailing strength of the economy in the face of tighter monetary policy conditions. US consumer confidence followed the recent business sentiment release by edging higher following the respite in energy prices and its impact on consumers in recent months. Likewise, initial jobless claims rose to 216,000, less than forecast, in the week ending December 17th, further highlighting the labour market tightness. The 2yr and 10yr US yields gained some momentum to 4.23% and 3.66%, respectively, and the dollar remained broadly unchanged. In the previous quarter, the GDP growth was revised from 2.9% to 3.2%. The slew of data today pointed to resilient economic background going into the new year and has added downside momentum to risk assets.
Meanwhile, risk sentiment failed to hold up in the metals space despite China’s move to relax quarantine for inbound travellers. Aluminium strength in the latter part of the day helped push the metal to settle at $2,406/t; cash to 3-month settled at -$28.25/t. Likewise, lead closed higher at $2,216.50/t. Other metals saw weakness prevail in the second half of the day, with copper weakening below the support level of $8,308/t. Nickel fluctuated, touching the lows of $28,500/t during the days before $29,240/t. Zinc closed at $2,948/t.
Oil futures remained broadly unchanged, with WTI and Brent settling at $78/bl and $82/bl. Gold and silver saw another day of lacklustre moves, remaining at $1,796/oz and$23.60/oz, respectively.
All price data is from 22.12.2022 as of 17:30