US stocks edged slightly higher after a batch of data pointed to slowing economic performance out of the region; the improved sentiment across riskier assets once again highlights the view that markets view the economic releases through the prism of the Fed and, in turn, the monetary policy outlook. The forward swaps are still pricing in a 22bps hike next week. US economic growth slowed more than forecast in comparison to the previous quarter, growing by 1.1%; personal consumption accelerated, growing by 3.7%. Prices once again surprised on the upside, accelerating to 4.9% q/q. Meanwhile, US pending home sales fell last month by the most since September, but the overall index remained above December lows, suggesting that the sector might be more resilient than originally expected. The dollar sound support at 101.40, and the 10yr US Treasury yield settled slightly above 3.50%. Elsewhere, Eurozone economic confidence rebounded in April as the better mood among consumers offset losses elsewhere.
Economic data out of the US helped prop up the risk-on sentiment later on in the day, and it was just enough to offset the earlier losses. The metals settled unchanged on the day. Aluminium edged lower to test the robust support level at $2,300/t before settling slightly higher at $2,319/t. Nickel gained some ground above $23,600/t to close at $24,099/t. Lead and zinc closed broadly unchanged at $2,099.50/t and $2,621/t, respectively. The cash to 3-month spreads have all dipped lower in recent days, given the lack of demand seen across the metals.
WTI and Brent found support at $75/bl and $78/bl, respectively, following the sell-off that took place late last night. Mixed US economic signals are muting the crude demand out of the region. Gold and silver once again remained unchanged at $1,984/oz and $24.89/oz, respectively.
All price data is from 27.04.2023 as of 17:30